Income Tax Act 2025 gets President’s assent; will be effective from 1st April 2026
New Income Tax Act, 2025 published in Official Gazette
- Context: The Income Tax Act, 2025 has been published in the Official Gazette after receiving the President’s assent.
- Effective Date: Will come into force from 1st April 2026.
- Significance: Replaces the Income Tax Act, 1961, ushering in a simpler, transparent, and compliance-friendly direct tax regime.
- Key Features:
- Structural simplification: Sections reduced from 819 to 536; chapters reduced from 47 to 23.
- Introduction of tables and formulas for clarity and ease of compliance.
- Tax year concept: Replaces the financial year and assessment year, reducing confusion for taxpayers.
- Objective: Enhance transparency, ease of compliance, and efficiency in the direct taxation system.
Updated - August 22, 2025 8:40 PM | News On Air
Income Tax Act 2025 Income Tax Department President’s Assent Official Gazette Direct Tax Reform Replacement of Income Tax Act 1961 Simplified Tax Structure Tax Year Financial Year Assessment Year Sections Reduction Chapters Reduction Tables and Formulas Transparency in Taxation Compliance-Friendly Tax Regime Indian Economy Tax Reforms Ease of Doing Business GS-III Economy Direct Tax Law