For many salaried taxpayers, the last quarter of FY 2025-26 brought an unpleasant surprise. Monthly take-home salaries suddenly dropped as employers sharply increased Tax Deducted at Source (TDS) between January and March 2026. For many employees, the shock did not end there. While preparing to file income tax returns for AY 2026-27, many are now discovering an additional burden: a sizeable self-assessment tax liability along with interest for short payment of advance tax.
This trend is likely to continue for Tax Year 2026-27, which commenced on April 1, 2026, unless salaried taxpayers become significantly more proactive about tax planning, income disclosure and TDS management right from the beginning of the financial year.
