Income Tax Reforms 2026: Key Changes Effective April 1
                     Income Tax Reforms 
2K0ey2 6C:hanges Effective 
April 1
Core Reforms 
Overview
The shift to a unified “tax year” aligns assessment years with 
financial years, reducing confusion in filings. TDS and TCS 
thresholds rose to Rs 50,000 for certain  transactions,  while  
presumptive  taxation  limits  for  professionals increased to Rs 75 
lakh turnover.
These updates prioritize ease for salaried individuals and small 
businesses navigating AY 2026-27.
Expanded HRA 
EHouxse eRenmt Allowpancte (iHoRA) nreliesf now covers 50% of basic 
salary in four more metros—Bengaluru, Pune, Hyderabad, 
and Ahmedabad— matching  Delhi  and  Mumbai  benefits.  
Renters  must  still  submit proofs like agreements and 
receipts, but the expansion aids urban employees facing 
high living costs.
Revised ITR 
Deadlines and 
Forms
New ITR forms for AY 2026-27 extend filing windows: ITR-1
and ITR-4 by July 31, others by September 30, with 
pre-filled data  enhancing  accuracy.  Taxpayers  gain  
from  simplified schedules for capital gains and 
foreign assets, minimizing manual inputs.
Impact on Businesses and 
IInvnestvorse besnetfit ofrorm sextended Section 80C limits to Rs 2 lakh and 
rationalized capital gains tax at 12.5% for long-term assets. Businesses see 
relaxed advance tax rules, with payments  due  only  if  liability  exceeds  Rs  
10,000  quarterly.  These  changes  foster investment while curbing evasion 
through AI-driven audits.
How Policy Changes The Growing Impact on 
Affect Businesses Businesses and Investment 
and Investors Decisions
Business Growth and Economic Changes and 
Investor Confidence: Their Impact on 
Key Impacts Businesses & Investors
Thank 
Staying informed on these reforms ensures 
Ysmooother fiulings and optimal tax planning amid India’s evolving fiscal policies.
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