India's Tax System Transformed: New Income-tax Act 2025 Effective April 1, 2026

• India's Income-tax Act, 1961, replaced by the Income-tax Act, 2025, effective April 1, 2026, for FY 2025-26 filings.
• The new Act simplifies tax law, reducing sections from 819 to 536 and introducing a unified 'Tax Year'.
• It emphasizes digital procedures, faster refunds, and clarifies treatment of digital and global income.
• Taxpayers benefit from revised tax slabs (up to Rs 12 lakh effectively tax-free), higher standard deductions, and simpler ITR forms.
• Aims to reduce tax disputes through clearer language and consolidated provisions.

Why It Matters: India's new Income-tax Act 2025 simplifies tax law, modernizes procedures, and benefits taxpayers.