Finance Minister Nirmala Sitharaman on Saturday announced that the Income Tax Act, 2025 will be implemented from April 1, 2026, while presenting the Union Budget 2026–27 in the Lok Sabha, marking her ninth consecutive Budget presentation.
Referring to her July 2024 announcement, Sitharaman said the comprehensive review of the Income Tax Act, 1961 has been completed in record time. “The Income Tax Act, 2025 will come into effect from April 1, 2026. Simplified rules and forms will be notified shortly,” she said.
If you enjoyed reading this article, you can help support our journalism by adding OHeraldo as a preferred source.
The new legislation is designed to replace the six-decade-old tax law with a more streamlined and transparent framework. Approved by Parliament in August 2025, the Act consists of 536 sections spread across 23 chapters and 16 schedules, covering all aspects of direct taxation. Once implemented, it is expected to simplify compliance, reduce litigation, and improve clarity for taxpayers, marking a major overhaul of India’s direct tax regime.
