New Tax Rules Kick In April 1: What You Need To Know

• India's income tax system undergoes major overhaul from April 1, 2026, with the Income-tax Act, 1961 replaced by the Income-tax Act, 2025.
• Introduction of a single term, "Tax Year," replacing "financial year" and "assessment year" to simplify understanding and filing.
• Tax rates remain unchanged, with the current slab system continuing, allowing individuals earning up to ₹12 lakh annually to pay zero tax under the new regime due to rebates and deductions.
• Tighter compliance measures require more detailed disclosures for claims like HRA, investments, and foreign assets to reduce tax evasion.
• Applying for or updating a PAN card will require additional mandatory documents beyond Aadhaar, and new application formats will be introduced.