Income Tax Act, 2025

India replaced its six-decade-old Income-tax Act, 1961 with the Income Tax Act, 2025, which took effect on 1 April 2026. The new statute keeps existing tax rates and policy untouched but rewrites the law's architecture: fewer sections, a single 'Tax Year' in place of the old previous-year/assessment-year split, and consolidated provisions meant to cut disputes and compliance friction. The Central Board of Direct Taxes backed the switch with a nationwide 'PRARAMBH 2026' outreach drive, including an AI helpdesk chatbot, to walk taxpayers through the transition.