The Income-tax Act, 2025 replaces the Income-tax Act, 1961 with effect from 1 April 2026. It aims to simplify the language and structure of the law and reduce the number of sections.
One visible change is the concept of a single “tax year”, which replaces the separate terms previous year and assessment year. Section numbers have been renumbered, so forms, notices and references will look different even where the substance is largely the same.
Key points
- Applies from tax year 2026-27 (starting 1 April 2026)
- Returns for FY 2025-26 are still governed by the 1961 Act
- Section numbers differ: check the mapping before citing provisions
- Rates and slabs are set by the annual Finance Act
General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.
CA Rahul Rajendra MohiteACA, M.Com · ICAI Membership No. 622387 · Founder, Rahul R. Mohite & Co., PuneFirm profile and key facts