New Income Tax Rules to be Implemented by December

The Income Tax Bill 2025 has been notified after receiving the President's approval. This new law will come into force from April 1, 2026, and will replace the Income Tax Act of 1961.

No More Assessment Year, It Will Be Tax Year

Finance Minister Nirmala Sitharaman introduced the bill with special consideration for the convenience of small taxpayers.

The bill aims to simplify the tax laws by reducing the number of pages by half and removing irrelevant provisions. For example, during income tax return filing, there will no longer be a need to mention the assessment year and financial year separately.