Quick Summary
The Government of India has introduced the Income-tax Act, 2025, a landmark reform aimed at simplifying the countrys complex tax framework. Replacing the decades-old Income-tax Act, 1961, the new law focuses on clarity, reduced litigation, and ease of compliance without introducing major policy chan
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FAQ :
The new Income Tax Act, 2025, will be effective from April 1, 2026, applying to the Tax Year 2026-27 onwards.
No, the Income-tax Act, 2025, focuses on simplification and clarity and does not introduce any major policy or tax rate changes.
The new Act replaces the dual system of Previous Year and Assessment Year with a single term, 'Tax Year', to simplify tax calculations and align with global practices.
The new Act significantly reduces the number of sections from 819 to 536, halves the word count, removes redundant provisions, and uses simpler language and a clearer structure.
No, cases related to earlier years and ongoing proceedings will continue to be governed by the Income-tax Act, 1961.
A mapping table of old and new sections is available on the official Income Tax Department website.
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