New Income Tax Act signed into law
India just got a tax law makeover.
The Income Tax Act, 2025, signed off by the President this week, will kick in from April 1, 2026—replacing the much older 1961 version.
The main goal? Make taxes simpler and way less confusing for everyone.
What's new?
The new act shrinks the law from 819 to 536 sections and slashes chapters nearly in half.
Instead of juggling terms like 'previous year' and 'assessment year,' there's now just 'tax year'—so it's easier to keep track.
Capital gains rules are clearer now, and yes, your crypto is officially a taxable asset.
Other key takeaways
You can get refunds even if you file late, deductions on inter-corporate dividends are back, and anonymous donations to purely religious trusts are exempted again.
Plus, payments for overseas education won't face extra TCS if financed by banks.
The act also leans into faceless assessments and digital compliance—all without changing tax rates—making things smoother for taxpayers accustomed to digital processes.