New Income Tax Act kicks in from April 1
Starting April 1, 2026, the new Income Tax Act takes over from the old 1961 law.
It's been trimmed down (fewer sections and chapters, and half as many words) so you won't need a law degree to figure out your taxes.
Key changes to know
Now there's just one Tax Year (April to March), instead of juggling Previous and Assessment years.
Outdated rules are gone. You can claim TDS refunds on belated (late) returns; penalties or late-filing fees may still apply.
Plus, things like crypto are officially taxed as capital assets now.
TCS is tweaked for overseas transfers above ₹10 lakh
Tax Collection at Source (TCS) is tweaked for overseas transfers above ₹10 lakh, with a simpler rate for stuff like scrap or minerals.
The new default: no tax up to ₹4 lakh income; 5% between ₹4-8 lakh; and up to 30% if you're earning more than ₹24 lakh.
Hopefully, less stress when tax season rolls around
All this means easier filing, clearer rules, fewer disputes with tax officials, and hopefully less stress when tax season rolls around.