New Income Tax Act, 2025 to Replace 1961 Law from April 1, 2026: FM Sitharaman Announces Major Tax Reform

Finance Minister Nirmala Sitharaman announced that the new Income Tax Act, 2025 will come into force from April 1, 2026, replacing the six-decade-old 1961 tax law. The new law aims to simplify compliance, reduce litigation, and make tax rules easier for ordinary taxpayers.