Income Tax Act 2025: India's Major Tax Reform from April 1, 2026

• India's Income Tax Act, 2025, replaces the 1961 Act from April 1, 2026, simplifying the direct tax system without changing tax rates.
• The new law introduces a single 'Tax Year' system, eliminating 'Previous Year' and 'Assessment Year' distinctions for easier filing.
• Key changes include expanded PAN rules for high-value transactions, tightened cash reporting, and increased HRA benefits for metro cities.
• Draft Income-tax Rules 2026 propose structural simplification, reducing total rules from 511 to 333 and forms from 399 to 190.
• The reform aims for clarity, fewer disputes, and modernized compliance, recognizing CBDC and tightening crypto reporting.