New Income Tax Law From April 2026: Simpler, Digital, Fear-Free Tax Regime Ahead

• India to replace 60-year-old Income Tax Act, 1961, with new Income Tax Act, 2025, from April 1, 2026.
• New law aims for a simpler, transparent, fully digital, and "fear-free" tax environment, reducing notices and speeding up refunds.
• Middle-class relief continues; income up to Rs 12 lakh tax-free, but deductions for insurance/housing loans removed.
• GST framework, revised in Sept 2025, focuses on digitisation and curbing evasion; customs duties reformed for easier trade.
• Tobacco products to remain expensive; electronics and mobile phones may become more affordable due to reforms.

Why It Matters: India's tax system is undergoing a major overhaul for simplicity, digitisation, and ease of compliance.