meta_id 3029497

On April 1, 2026, India's Income-tax Act 2025 came into force, replacing the 60-year-old Income-tax Act 1961. The new act represents a comprehensive modernisation of India's direct tax structure, introducing simplified language, streamlined structure, and reader-friendly presentation while maintaining the underlying tax policy framework. The act was passed by Parliament on August 12, 2025, and received presidential assent on August 21, 2025. To implement the new act's provisions, the Central Board of Direct Taxes (CBDT) notified the Income-tax Rules 2026 on March 20, 2026, alongside new simplified and standardised forms. The restructured forms and procedures aim to simplify compliance for taxpayers and tax administrators. The new legislation introduces greater clarity and ease of compliance through its modernised framework. The act applies to all entities subject to India's direct tax regime, including individuals, businesses, and other taxable entities. The Finance Ministry has positioned the act as a significant step towards India's development agenda, marking a new chapter in the country's tax administration. All relevant rules, forms, and notifications have been made available through official gazette notifications. Taxpayers and tax practitioners should familiarise themselves with the new provisions and updated compliance procedures effective from the implementation date. REFERENCES: Press Information Bureau, Ministry of Finance, India. "Income-tax Act, 2025 Comes Into Force Today (April 1, 2026)." April 1, 2026. https://pib.gov.in/