The Income Tax Act 2025, which replaced the 1961 law, was announced on Friday 22nd August in the official Bulletin. This comes the day after the president of the murm gave the law to the law.
The X income tax description announced about the development of the approximate point.
“The Income Tax Act, 2025, received the President Hon’Ble on 21 August 2025. The reform of milestones replacing the 1961 law, which prohibits simpler, transparent and compliance with the direct tax regime,” India’s income tax said on X.
New laws pursuant to the Income Tax Act 2025 will enter into force from 1 April 2026.
The Income Tax Act was approved in parliament during the monsoon meeting, which was closed on Thursday.
“This act can be called the Income Tax Act 2025. It is expanding to all of India,” the government said, and after more than six decades it has described a comprehensive overworking of the existing tax system.
New Rules under the Income Tax Act, 2025
The New Income Tax Act, 2025, is trying to simplify the act of 1961, which would lead to a shorter, clearer and more concise document that can benefit taxpayers.
The law got rid of excess provisions and archaic language and introduced a simpler language for ordinary people. It also reduces the number of sections out of 819 in the Income Tax Act from 1961 to 536, while the number of chapters was reduced from 47 to 23.
The main change in the Income Tax Act 2025 is to rename the evaluation year (AY) and the financial year (FY) to the tax year to avoid confusion.
It retains existing boards for paid individuals, entrepreneurs, professionals and other taxpayers.
The Center has also retained the controversial provision where the income tax officials will have access to your e -mails and social media during search operations or seizure, thus maintaining the definition of “virtual digital space”.
The number of words has been reduced from 5.12 lacquers to 2.6 Lakh in the new income tax law and for the first time represents 39 new tables and 40 new formulas that will replace the dense text of the 1961 law to increase the clarity.
(Tagstotranslate) Income Tax Act 2025
