New Income Tax Law 2025: What Changes for Taxpayers from April 1?

• The new Income Tax Act, 2025, will replace the 1961 Act from April 1, aiming to simplify the tax system for taxpayers and the Income Tax Department.
• The law emphasizes technology, making assessment, notices, and communication more digital and automated.
• Taxpayers will need to use new forms and updated procedures for filing returns, with CBDT actively preparing these changes.
• CBDT Chairman Ravi Agrawal has urged officers to thoroughly understand the new law to provide correct guidance to taxpayers.
• The new framework focuses on 'NUDGE' for voluntary compliance, offering support and information instead of intimidation.

Why It Matters: New Income Tax Act 2025 simplifies tax, digitizes processes, and encourages voluntary compliance.