The Income Tax Act, 2025 comes into force April 1, 2026, replacing 1961 law, introducing structural and procedural changes despite no change in tax rates or deductions. Budget 2026 proposals via Finance Act 2026 will apply alongside it.
From 1 April 2026, the Income-tax Act 2025 will replace the Income-tax Act 1961, introducing a unified Tax Year, revised return deadlines, extended revised-return timelines, changes in STT and TCS rates, updated buyback taxation, and new rules for perquisites and interest deductions.
