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The Government of India has officially introduced the Income tax Act, 2025, a landmark legislation aimed at consolidating and modernizing India's direct tax framework. The Act, passed by Parliament in the Seventy-sixth Year of the Republic of India, willcome into effect from April 1, 2026. A Major Overhaul of India's Income Tax Law The Income Tax Act, 2025 replaces and streamlines provisions of the earlier law to provide clarity, transparency and improved compliance mechanisms. The Act exten
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FAQ :
The Income Tax Act, 2025 will come into effect from April 1, 2026.
The Act aims to consolidate and modernise India's direct tax framework, providing clarity, transparency, and improved compliance mechanisms.
Yes, the Income Tax Act, 2025 explicitly includes virtual digital assets (VDAs) such as cryptocurrencies and NFTs within the definition of income.
The 'tax year' is defined as a 12-month period starting from April 1, 2026, aligning tax computation with the financial year.
Residents will be taxed on their global income (in India and abroad), while non-residents will only be taxed on income received or accrued in India.
Businesses, professionals, and taxpayers should prepare for the transition before April 2026 by reviewing their tax positions, updating systems, and ensuring compliance with the revised provisions.
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