New Income Tax Challans Go Live from April 1, 2026, with Tax Year Shift

The Income Tax Department has implemented a revised challan framework on the e‑filing portal from April 1, 2026. The changes were made to align tax payments with the provisions of the Income-tax Act, 2025.

The update introduces new challan forms that shift the focus from the earlier Assessment Year model to a Tax Year structure. The overall objective is to simplify reporting, enhance accuracy and improve backend integration for taxpayers.

Introduction Of New Challan Forms

The department has introduced updated challans ITNS 280N, 282N and 288N, replacing the earlier formats. These forms have been redesigned to support the Tax Year concept and improve clarity for taxpayers making payments.

The new structure also integrates digital features such as CRN generation to allow better tracking of payments. The revised format aims to provide a more intuitive experience for users navigating the updated system.

Transition From Assessment Year to Tax Year

A significant change in the new system is the shift from Assessment Year to Tax Year for current‑period tax payments. Payments linked to income earned from April 1, 2026, onwards must be made under Tax Year 2026–27.

The portal now displays Tax Year options directly to reduce confusion during filing. This change helps align payments more closely with the period in which income is earned.

Dual System During the Transition Phase

Although the Tax Year system is now active, the Assessment Year concept has not been fully phased out. Taxpayers must continue to use AY 2026–27 for reporting income and payments related to FY 2025–26.

This includes self‑assessment tax paid in June or July 2026 for the pre‑transition financial year. As a result, both systems will operate simultaneously during the transition period to ensure continuity.

Continued Use of Old Challans for Legacy Payments

The department has clarified that older challans linked to the Income-tax Act, 1961, will continue to apply in specific situations. Tax deducted before April 1, 2026, must be deposited using the previous challan codes and formats.

Past dues, such as pending demands, must also be paid under the relevant Assessment Year. This approach ensures that historical transactions remain properly aligned with the earlier legal framework.

Updated Reporting Requirements for TDS And TCS

The revised challans require deductors and collectors to use updated legal references under the 2025 Act. TDS payments must now quote Section 393, while TCS payments must reference Section 394.

Using older sections, such as 194C or 194J, for post‑April 2026 transactions may result in validation errors on the portal. These updates are designed to align withholding tax payments with the new legal structure introduced under the Act.

Read More: Claiming Donation Deductions in ITR? Here’s What Changes in AY 2026–27.

Conclusion

The Income Tax Department’s introduction of new challans marks a structural shift in how tax payments are recorded. The move to a Tax Year system seeks to reduce complexity and improve consistency with the underlying law.

Transitional arrangements ensure that existing Assessment Year‑based payments continue smoothly. Overall, the revised framework aims to simplify compliance for taxpayers while boosting system integration.

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