The Economic Times

Waiting on income? Deferring payments into next year could reduce your 2026 taxable income, but there is a catch you should know first

If youre self-employed and expect a lower income next year, delaying eligible payments until January could reduce your current-year taxable income. But this strategy generally works for cash-basis taxpayers; accrual-basis businesses usually recognize income when it is earned, not when the money arrives.