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The Income Tax Department has updated its e-Pay Tax portal, replacing 'Assessment Year' with 'Tax Year' under the Income-tax Act, 2025. Investors must select the correct Act to ensure accurate advance tax payments.
What Happened
The Income Tax Department has introduced a significant terminology change on the e-Pay Tax portal effective from June 15, 2026. The term 'Assessment Year,' which has been a standard reference for taxpayers for years, is being replaced by 'Tax Year.' This change aligns the portal with the new Income-tax Act, 2025, which officially came into effect on April 1, 2026. For income earned in the fiscal year 2026-27, the system now categorizes it under Tax Year 2026-27.
Navigating the Portal Update
The e-Pay Tax portal now presents two distinct options for making tax payments: the Income-tax Act, 1961, and the Income-tax Act, 2025. This dual-option interface is designed to help taxpayers transition smoothly between the old and new legislation. When making advance tax payments for the current year, it is essential to select the option that corresponds to the period in which the income was generated.
Why Correct Selection Matters
It is important for taxpayers to understand that this portal update does not offer a choice between tax laws. The applicable legislation is strictly determined by the period of income generation. Income earned up to March 31, 2026, is governed by the Income-tax Act, 1961, and should be paid under that option. Income generated on or after April 1, 2026, falls under the Income-tax Act, 2025. Selecting the wrong Act could lead to administrative errors in tax records, which may cause complications during future filing or assessment processes.
Understanding Advance Tax Rules
Under Section 403 of the new Income-tax Act, 2025, the requirement to pay advance tax remains in place for applicable taxpayers. However, there are specific exemptions for those who do not fall under the mandatory bracket. Resident senior citizens aged 60 and above are exempt from paying advance tax if they do not have any income from a business or profession. Additionally, if an individual's total net tax liability for the year is less than ₹10,000, they are not required to pay advance tax.
What Investors Should Track
As the new tax system integrates into regular financial activities, investors and taxpayers should verify their tax categorization before completing any online payments. Ensuring that payments are directed to the correct legislative bucket is a critical step in maintaining accurate compliance. For any ongoing proceedings related to Assessment Year 2026-27 or earlier, taxpayers should continue to follow the guidelines and provisions of the Income-tax Act, 1961. Maintaining clear records of these payments is essential for future tax filings.