Tax Rules Overhaul in 2026: Income Tax Act, GST, Customs See Major Changes

• Income Tax Act, 2025 replaces 1961 Act from April 1, 2026, aiming for simplification and reduced litigation.
• New tax regime offers no tax on annual income up to ₹12 lakh, with lower rates like 5% for ₹4-8 lakh and 30% above ₹24 lakh.
• New excise duty on cigarettes and a cess on pan masala will be introduced in 2026 to boost revenue.
• GST reforms are now stable after September 2025 rationalization into 5% and 18% slabs, with 'Sin goods' retaining high tariffs.
• Customs duty reform is the next government focus, including reduced tariff slabs and digital workflows for export-import.

Why It Matters: India's tax landscape undergoes significant simplification and reform across Income Tax, GST, and Customs by 2026.