Quick Summary
The Central Board of Direct Taxes (CBDT) has issued a detailed set of FAQs to guide taxpayers on the transition from the Income-tax Act, 1961 to the Income Tax Act, 2025, which comes into effect from April 1, 2026. The document clarifies key compliance, procedural and legal issues during the shift to the new tax regime. Key Highlights from the FAQs No New Taxes Introduced: The new Act focuses on simplification and clarity without increasing tax burden. Old New Laws to Run Parallel: The 1
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FAQ :
The Income Tax Act 2025 comes into effect from April 1, 2026.
No, the new Act focuses on simplification and clarity and does not introduce any new taxes.
The Income-tax Act, 1961 will continue to apply to income earned in earlier years, while the Income Tax Act, 2025 will govern income from the financial year 2026-27 onwards.
Pending assessments, appeals, and reassessments will be completed under the old Income-tax Act, 1961 to ensure continuity.
Yes, taxpayer rights, refunds, and liabilities accrued under the old Act will continue to be honoured even after the new law comes into force.
Taxpayers should maintain separate records for FY 2025-26 and FY 2026-27, ensure they select the correct assessment year (old) versus tax year (new), and reconcile TDS and AIS carefully.
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