New Income Tax Act 2025: Simpler Tax System, Extended ITR Deadline from April 2026

• The New Income Tax Act 2025 will be implemented from April 1, 2026, replacing the 60-year-old law.
• Finance Minister Nirmala Sitharaman announced that tax slabs and structure remain unchanged; the focus is on simplification.
• Rules and tax forms have been simplified, with notifications to be issued soon for taxpayer understanding.
• The deadline for filing Income Tax Returns has been extended from December 31 to March 31, offering relief to taxpayers.
• The new law introduces a single 'Tax Year' concept, replacing 'Assessment Year' and 'Previous Year', and consolidates TDS rules.

Why It Matters: The New Income Tax Act 2025 aims for a simpler, taxpayer-friendly system with an extended ITR deadline.