Income Tax Act, 2025
India replaced its six-decade-old Income-tax Act, 1961 with the Income Tax Act, 2025, in force since 1 April 2026. The new statute leaves rates and tax policy untouched but rewrites the architecture: fewer sections, one 'Tax Year' in place of the old previous-year and assessment-year pair, and consolidated provisions meant to cut disputes and compliance friction. The Central Board of Direct Taxes prepared taxpayers with a nationwide 'PRARAMBH 2026' drive and an AI helpdesk. The first filing season of the new era is still run on the old law: returns for Assessment Year 2026-27 remain governed by the 1961 Act, and more than 7.8 crore of them had been filed by 31 August 2026 - a record, the Income Tax Department says.
- Income Tax Act 2025
- ITR filing
- Assessment Year 2026-27
- CBDT
- Tax Year
- Section 44AB
- Income Tax Department
- Finance Act 2026
Read the full living note — free
The complete note in both exam lenses (UPSC analytical / fact capsule), its full version history, and “what changed since you last read” — plus tonight's quiz.
Open in CA·WikiAI-assisted, human-reviewed · sourced from PIB, RBI & ministries · editorial policy
More living notes in Economy & Banking
- India's Pharmaceutical SectorAdds the 30 percent-of-MRP cap on cancer-drug trade margins and the draft curb on prescription-drug advertising by sellers; a new section explains NPPA, the DPCO and trade margins.
- SEBI Regulatory Actions 2026Opened SEBI's 2026 decision log with its exam core and the 7 October circular making a six-level, colour-coded Credit Risk-o-Meter compulsory for debt securities.
- New GDP Series (Base Year 2022-23)Adds the NSO's 9 October draft guideline for States to compile expenditure-side GSDP on the 2022-23 base; no State yet estimates private consumption.
- GST 2.0 — The Two-Slab ReformAdds the 57th GST Council's recommendations — arrest powers dropped, prosecution threshold to ₹5 crore, ₹10,000 notice floor, faster refunds — and trims the note to its exam core.
- India's Maritime & Shipping ReformsLogs the third Sagarmanthan dialogue (shipping ministry with ORF, 7 October 2026) and the India-EU Green Shipping Corridor coalition launched there; older log entries compressed.
- India's Foreign Trade - FY 2026-27Adds India's place among 15 economies backing a USTR-issued statement on structural excess capacity, and Goyal's 8 October reaffirmation of the US$ 1 trillion export goal.