Income | CC News
The Income-tax Act, 2025 came into force on Wednesday, marking a major reform in India’s direct tax system and replacing the six-decade-old Income-tax Act, 1961.
The new legislation aims to simplify and modernise the country’s income-tax framework through clearer language, a streamlined structure, and a more user-friendly format, while retaining the existing tax policy framework.
The Act was passed by Parliament on August 12, 2025, and received the assent of President Droupadi Murmu on August 21, 2025, paving the way for its implementation from April 1, 2026.
To operationalise the provisions of the new law, the Central Board of Direct Taxes notified the Income-tax Rules, 2026 on March 20, 2026. Alongside, new tax forms have also been introduced.
Officials said the forms have been simplified and standardised, with processes re-engineered to make compliance easier for taxpayers.
The government has described the new Act as a step towards improving transparency and reducing complexity in tax administration, with a focus on enhancing ease of compliance.
With its implementation, the Income-tax Act, 2025 is expected to usher in a new phase in India’s tax system, aligned with the broader vision of a developed India.
