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Income tax refund rules change April 2026 two updates for Tax Year 2026 27
Economy
Published on 29 April 2026
Refunds may now be adjusted against old tax demands
From April 1, 2026, the Income Tax refund process will shift under the Finance Act 2026. The law clarifies how interest is computed for earlier tax years and permits refunds to be set off against tax demands under either the old or the new tax framework. The changes aim to streamline settlement for taxpayers in Tax Year 2026-27.
- New refund rules kick in from April 1, 2026 for AY 2026-27
- Finance Act 2026 clarifies interest computation for past years
- Refunds can be set off against pending demands under old or new Acts
- Process is expected to become simpler for taxpayers
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times