CBDT Chairman Asks Income Tax Department to Gear Up for New Direct Tax Law from 1st April 2026



Quick Summary
The CBDT Chairman has instructed the Income Tax Department to prepare for a new direct tax law, set to replace the Income Tax Act, 1961, from April 1, 2026. This transition involves formulating new rules and procedures, with significant emphasis on training and capacity building for tax officials. The department is shifting towards a trust-based administration, focusing on facilitation, service delivery, and voluntary compliance through data analytics and grievance redressal.

Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal has called upon Income Tax Department officials to be fully prepared and proactive for the transition to the new direct tax regime, scheduled to come into force from April 1, 2026. Emphasising clarity, readiness and purpose, he said the coming months would be crucial in ensuring a smooth shift to the Income Tax Act, 2025. In his customary New Year message to department staff, Mr. Agrawal described 2026 as a year of "special significance
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FAQ :

The new direct tax law is scheduled to come into force from April 1, 2026.

The new law will replace the six-decade-old Income Tax Act, 1961.

New rules, procedures, and statutory forms are being formulated, and training and capacity-building initiatives are already underway to familiarise officers with the new law.

The department is moving beyond revenue collection and enforcement towards facilitation, trust, and service delivery, utilising technology and data-driven systems.

Officers are asked to strengthen behavioural tax administration using the NUDGE framework, which involves non-intrusive data usage to guide and enable voluntary compliance through better data analytics.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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