India's New Tax Era: IT Act 2025, GST, Customs Reforms from 2026

• New Income Tax Act, 2025, replaces 1961 Act from April 1, 2026, aiming for simpler, clearer tax laws and reduced disputes.
• Taxpayers opting for the new regime will pay no income tax up to ₹12 lakh annual income, with simplified slabs and lower rates.
• Additional excise duty on cigarettes and a new cess on pan masala will be implemented in 2026 to curb consumption and boost revenue.
• GST rates remain stable, with a fully rationalized structure from 2026, featuring two main slabs (5%, 18%) and reduced rates on many goods.
• Customs duty reforms in 2026 include fewer slabs, faceless assessment, and digital workflows to enhance transparency and reduce costs.

Why It Matters: India ushers in a simpler, transparent, and business-friendly tax system with major reforms from 2026.