New Income Tax Rules 2025: Major Overhaul for Simpler, Digital-First Tax System
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News18•27-01-2026, 14:06
New Income Tax Rules 2025: Major Overhaul for Simpler, Digital-First Tax System
- •India introduces new Income Tax Act 2025, replacing the 1961 legislation for a simpler, technology-driven tax system.
- •The new Act significantly reduces sections from 819 to 536 and halves the word count, using tables and formulas for clarity.
- •It replaces the 'previous year' and 'assessment year' with a single 'Tax Year' for easier compliance.
- •The law emphasizes digital-first, faceless processes to reduce human interface, speed up assessments, and minimize disputes.
- •Individual taxpayers will benefit from higher exemptions, enhanced rebates, and simplified ITR forms, though tax rates remain unchanged.
Why It Matters: India's new Income Tax Act 2025 aims for a simpler, clearer, and more modern tax system from April 2026.
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