India's Tax Overhaul: New Income Tax Act, Levies, and GST Changes from 2026

• New Income Tax Act, 2025 replaces the 1961 Act from April 1, 2026, aiming for simplification and reduced litigation.
• Income tax exemption up to ₹12 lakh continues, with revised slabs (5% on ₹4-8 lakh, 30% above ₹24 lakh).
• New levies: additional excise duty on cigarettes and cess on pan masala to be implemented in 2026.
• 2026 marks the first full year of rationalized GST (5% and 18% slabs), with customs duty reform as the next focus.
• Government plans to introduce digital and faceless assessment processes for customs administration.

Why It Matters: India's tax system undergoes major reforms in 2026, simplifying laws and streamlining processes.