Income Tax Act 2025: New Rules from April 1, 2026; Simpler Tax System Ahead

• India's new Income Tax Act 2025, effective April 1, 2026, replaces the 1961 Act, aiming for a simpler, modern direct tax system.
• The new law clarifies 'tax year' by eliminating 'previous year' and 'assessment year' confusion, simplifying return filing.
• Tax rates remain unchanged for 2026-27; new regime slabs include no tax up to Rs. 4 lakh, with 5% to 30% for higher incomes.
• CBDT's Draft Rules 2026 introduce new PAN requirements for high-value transactions and increase HRA exemption for certain cities.
• The Act reduces rules from 511 to 333 and forms from 399 to 190, making the tax system clearer and less prone to disputes.