The new Income Tax Act which has been announced in July 2024, may be introduced during the next Budget Session.
But implementation may take over a year due to extensive changes required.
As the development of new rules, forms, and systems is critical.
Operational readiness and compliance require careful calibration.
The new Income Tax Act announced in July 2024 is expected to be introduced during the next Budget Session, but its implementation may take over a year due to the extensive changes required.
This includes developing new rules, forms, and systems, which is critical for operational readiness and compliance.
¹ The government has been working on simplifying the tax regime, with recent changes introduced in the 2024-25 Budget, such as enhanced deductions and revised tax slabs.
However, the new Income Tax Act will likely bring more comprehensive reforms, which will require careful calibration to ensure a smooth transition.
In the meantime, the Central Board of Direct Taxes (CBDT) has been focusing on taxpayer outreach and assistance, with initiatives like faceless processes, speedy processing of returns and refunds, and pre-filling of Income Tax Returns (ITRs).²
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