New Delhi, Feb 1 (JKNS): Union Finance Minister Nirmala Sitharaman on Sunday announced that the Income Tax Act, 2025 will come into force from April 1, replacing the decades-old Income Tax Act of 1961, with simplified rules and redesigned return forms to be notified shortly.
Speaking during her Budget 2026-27 address in the Lok Sabha, as per news agency JKNS, the Finance Minister said the new legislation has been drafted in record time and will incorporate all direct tax changes proposed in the current Budget. She said taxpayers will be given adequate time to familiarise themselves with the new framework before its implementation.
Sitharaman said the revamped tax law is revenue-neutral and does not alter existing tax rates. Instead, it focuses on simplifying provisions, removing ambiguities and substantially reducing litigation by cutting down nearly 50 per cent of the text and sections compared to the existing law.
She said the new Act introduces a single “tax year” system by removing the distinction between assessment year and previous year, making compliance easier. The law also allows taxpayers to claim TDS refunds even if income tax returns are filed after the due date, without attracting any penalty. (JKNS)
