Income-tax Act, 2025

Effective Date : April 1, 2026 (for the 2026-27 tax year). Structure : 536 Sections and 23 Chapters. "The Income-tax Act, 2025 marks a historic shift in India’s direct tax landscape, replacing the six-decade-old 1961 Act. Effective from April 1, 2026, this streamlined legislation reduces complexity by cutting the number of sections and chapters nearly in half. It introduces the unified 'Tax Year' concept to replace the 'Assessment Year' and 'Previous Year' system, aiming to enhance transparency and simplify compliance for all taxpayers."