ITR
Which law applies to a notice received in 2026
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Facts
The Income-tax Act 2025 applies from tax year 2026-27. Notices, assessments and penalties for FY 2025-26 and earlier continue under the 1961 Act even if issued after 1 April 2026. So a Sec 142(1) notice for AY 2026-27 or earlier is in order.
Provisions and law
- Sec 142(1) (now Sec 268(1))Officer can call for a return, accounts, documents or information before making an assessment
- Income-tax Act 2025, Sec 536 (repeal and savings)Proceedings for earlier years continue under the 1961 Act
Analysis
Look at the assessment year on the notice. If it says AY 2025-26 or AY 2026-27, the 1961 Act numbers apply and your reply should cite them. A notice for tax year 2026-27 would cite Sec 268(1) of the 2025 Act instead. Challenging a notice only because it uses the old number will not work; focus on the facts.
Conclusion
- Check the assessment year printed on the notice
- Use 1961 Act section numbers in your reply for past years
- Reply on facts within the due date
- Ask a CA if the notice mixes the two Acts in a way that affects time limits
A Savvy can do this for you
Inquiry before assessment, Sec 142(1) (now 268(1))
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