New Tax Law 2025: Old Rulings May Not Apply Automatically, Warns Expert
Personal Finance
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CNBC TV18•16-01-2026, 08:59
New Tax Law 2025: Old Rulings May Not Apply Automatically, Warns Expert
- •The Income Tax Act 2025, effective April 1, 2026, introduces updated rules, procedures, and forms, streamlining definitions and grouping related provisions.
- •Deepesh Chheda of Dhruva Advisors states that 60 years of court rulings under the 1961 Act may not automatically apply to the redrafted 2025 law.
- •Past judicial principles may hold where wording is similar, but changes in language and intent mean old decisions might be irrelevant.
- •The new law is lauded as a significant structural reform, aiming for a simpler, more transparent system with reduced friction for taxpayers.
- •Ravi Agrawal of CBDT emphasizes training for officials to understand the new law's intent, while taxpayers should prepare by watching for notifications, organizing documents, and consulting advisors.
Why It Matters: Taxpayers and officials must adapt to the new Income Tax Act 2025 as old rulings may not automatically apply.
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