Income-tax Act 2025 to Replace Income-tax Act 1961 from April 1, 2026: Key Tax Changes Explained

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.

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.