e-Pay Tax Portal Update (April 2026): What Taxpayers Need to Know
From April 1, 2026, India has officially begun transitioning to a new tax framework with the introduction of the Income-tax Act, 2025, replacing the long-standing Income-tax Act, 1961. While this is a major structural reform, its implementation is gradual, and both laws currently operate side by side depending on the tax year involved.
Why the e-Pay Tax Portal Has Changed
The Income Tax Department has updated the e-Pay Tax portal to reflect this transition. Taxpayers will now notice an additional step while making payments: selecting the applicable law — either the 1961 Act or the 2025 Act.
This change is not a new compliance requirement but a necessary system update to ensure that tax payments are correctly mapped under the appropriate legal framework.
Understanding Which Act to Select
The most important factor in choosing the correct Act is the period in which the income was earned, not the date of payment.
*** Use the Income-tax Act, 1961 for:**
- Assessment Year 2026–27 and earlier
- Income earned before April 1, 2026
- Self-assessment tax, advance tax, or past demands related to earlier years
*** Use the Income-tax Act, 2025 for:**
- Tax Year 2026–27 onwards
- Income earned on or after April 1, 2026
- Future advance tax and filings under the new regime
What Has Actually Changed
Apart from the Act selection step, the overall payment process remains unchanged:
- Login using PAN/TAN
- OTP verification
- Challan generation
- Payment via net banking, UPI, or card
There are no changes to tax rates, due dates, or calculation methods for previous years.
Why This Selection Matters
Selecting the wrong Act can lead to:
- Incorrect challan mapping
- Payment not reflecting in ITR
- Demand mismatches or notices
This makes it essential for taxpayers and professionals to carefully verify the correct Act, year, and payment details before proceeding.
Conclusion
The e-Pay Tax portal update is a necessary step in India’s transition to the Income-tax Act, 2025. While the system now requires taxpayers to select between two laws, the rule is simple: income earned before April 1, 2026 falls under the 1961 Act, and income earned thereafter falls under the 2025 Act. Careful selection will ensure smooth compliance and avoid future complications.