New Income Tax Act: What's changing and why it matters
Big tax update coming!
From April 2026, the new Income Tax Act will kick in, replacing the old rules from 1961.
The goal? Make taxes simpler to understand and file, so there's less confusion and fewer headaches for everyone.
The government hopes this clarity will help more people actually follow the rules.
What's new for your wallet
The fresh tax regime means no tax on annual incomes up to ₹12 lakh (nice!). Incomes between ₹4-8 lakh get a light 5% rate, while those earning above ₹24 lakh face a 30% tax.
Exemptions and deductions are out, but the slabs are friendlier overall.
Also, expect higher cigarette taxes and a new pan masala cess in 2026—plus GST rates were reduced for hundreds of goods last September.
Customs processes are also getting a digital upgrade to make imports and exports smoother.