New Tax Law 2025: Old Rulings May Not Apply Automatically, Warns Expert

• The Income Tax Act 2025, effective April 1, 2026, introduces updated rules, procedures, and forms, streamlining definitions and grouping related provisions.
• Deepesh Chheda of Dhruva Advisors states that 60 years of court rulings under the 1961 Act may not automatically apply to the redrafted 2025 law.
• Past judicial principles may hold where wording is similar, but changes in language and intent mean old decisions might be irrelevant.
• The new law is lauded as a significant structural reform, aiming for a simpler, more transparent system with reduced friction for taxpayers.
• Ravi Agrawal of CBDT emphasizes training for officials to understand the new law's intent, while taxpayers should prepare by watching for notifications, organizing documents, and consulting advisors.

Why It Matters: Taxpayers and officials must adapt to the new Income Tax Act 2025 as old rulings may not automatically apply.