Tax obligation in AY 2026-27

The taxability for AY 2026-27 is set on the basis of the following: Residential status, Income, Source of income (salary, business, capital gains, etc.), Deductions/exemptions, and choosing between Old Tax Regime and New Tax Regime.

The following information will enable members to make an accurate tax calculation:

Age
Residential status (Resident/NRI)
Total income for FY 2025-26
Allocation of income, whether it's from salary, a business, business income, capital gains, interest, etc.
TDS already deducted
Whether you wish to opt for the old or new tax regime

The tax slabs in the new regime, for AY 2026-27, are the same as those that are applicable for AY 2025-26, despite the implementation of the new Income Tax Act, 2025.

My thanks to Shri Dhirajlal Rambhia for quick reply to my query.

However, I have another query described below.

I face a confusion every year while paying income tax. This confusion arises from accrued interest of FDs.

Both AIS and 26AS show paid and accrued interests of FDs bunched togather.

However, banks interest certificates have separate columns for two types of interests

I am supposed to follow AIS to pay tax. Isn't it ?

If I pay tax on the accrued portion of the interest this year and the FD matures next year, the bank will show entire period's interest as paid in next year's interest certificate. AIS will also show likewise next year. 

I will be required to pay tax on the entire amount of interest next year.

In that case, this year's accrued interest will be taxed twice.

What is the solution of this matter?

You can file feedback in AIS for the entry representing entire interest (for full period.) Need not pay tax twice. You are required to pay interest only over current period, whether accrued or paid on redumption in current year..

Is it permissible to pay tax this year without considering the accrued interests of the FDs and pay tax on the full amount of paid inerests in the year the FDs mature. Paid interest of that year will include this year's accrued interests also.

This way no tax is evaded.

You can change the method on cash basis, but it should be for all the FDs/investments, and should be followed the same method in future also.

Note.. In that case, your yearly accured interest as declared in AIS would be questionable. So, either way the query can be raised.

What are the conditions under clause (iv) of seventh proviso to section 139(1) of IT Act, 1961 

Following seventh proviso shall be inserted after the sixth proviso to sub-section (1) of section 139 by the Act No. 23 of 2019, w.e.f. 1-4-2020 :

Provided also that a person referred to in clause (b), who is not required to furnish a return under this sub-section, and who during the previous year—

 (i)  has deposited an amount or aggregate of the amounts exceeding one crore rupees in one or more current accounts maintained with a banking company or a co-operative bank; or

(ii)  has incurred expenditure of an amount or aggregate of the amounts exceeding two lakh rupees for himself or any other person for travel to a foreign country; or

(iii)  has incurred expenditure of an amount or aggregate of the amounts exceeding one lakh rupees towards consumption of electricity; or

(iv)  fulfils such other conditions as may be prescribed,

shall furnish a return of his income on or before the due date in such form and verified in such manner and setting forth such other particulars, as may be prescribed.

I have received an intimation u/s 143(1) in efiling portal in the section "view filed returns: with the following heading

"Your Return for AY 2026-27 has been processed. There is no payment due"

Below this Return details have been mentioned.

This I received today 15th July.

Yesterday, I had efiled ITR1 after e-payment of calculated income tax by the portal on the basis of my filled up ITR1 in agreement with AIS and 26AS

In the meantime I had received chalan of e-payment and thereafter acknowledgement of ITR1 yesterday itself.

Does it mean the hassle is over for this year and I am not required to do any thing more this year?

Correct...... Its over, no formalities pending.

Good Luck....

Thank you very much.

I may again request you to spare a slice of your valuable time next year if I happen to survive till then what I do not want from the core of my heart.

Its Grace of GOD.... He helps.... through someone like me.....