New ITR Deadlines, STT Hike, Revised Return Window Extended: Key Income Tax Changes From April 1

Big changes are coming to India’s tax system. Starting April 1, 2026, the old Income-tax Act, 1961 will get replaced by the fresh, modern Income-tax Act, 2025.

So, if you pay taxes—whether you’re an employee, an investor, or you run a business—get ready for some new rules, updated filing deadlines, and a couple of tweaks that will affect your financial routine.

First up, the whole law is getting a make–over.

The new Income-tax Act promises a cleaner structure and simpler language, so you won’t have to wade through confusing jargon anymore.

Filing should get easier for everyone. They’re also changing how tax years work:

The old split between “previous year” and “assessment year” gets ditched for the straightforward “Tax Year” concept—that’s a lot less confusing.

If you trade derivatives, watch out.

The government is raising the Securities Transaction Tax (STT).

Futures trades will now attract 0.05% STT (up from 0.02%), and options trades go from 0.1% to 0.15%.

The goal is to limit runaway speculation in the market and squeeze out more tax from stock transactions. If you’re a frequent trader, that’s going to nudge your costs up a bit.

Filing deadlines are changing too—and in a good way for some folks.

If you file ITR-1 or ITR-2, nothing changes; your deadline stays July 31. But if you’re a non-audit taxpayer filing ITR-3 or ITR-4, you now get an extra month, until August 31, to sort out your paperwork and submit your return properly.

There’s also a bigger window for fixing mistakes.

Up until now, you had nine months after the end of the tax year to revise your return. Now, you’ll get twelve months, which lets you make corrections right up to March 31 of the following year. That’s a relief for anyone who catches an error late.

So, what does all this mean?

Basically, the government wants to modernize the tax system, make compliance less painful, and give people more breathing room with deadlines. Filing and revision will be easier, timelines get clearer, and running your business gets a little more predictable.

Traders should keep an eye on those rising STT rates though—they will bite a bit more.

Bottom line:

come April 1, 2026, the new rules roll out. If you want to avoid surprises, keep yourself updated and plan your finances ahead.

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