The Central Board of Direct Taxes (CBDT), through its Press Release dated 1st April 2026, has officially notified that the Income-tax Act, 2025 has come into force from 1st April 2026, replacing the earlier Income-tax Act, 1961. This marks a significant shift in India’s direct tax framework.

Key Highlights of the New Law

 

Replacement of Old Law: The Income-tax Act, 1961 is now replaced by the Income-tax Act, 2025.
Simplified Language: The new Act uses clearer and more concise wording for better understanding.

Streamlined Structure:

Sections have been reorganised logically to improve navigation and interpretation.

Focus on Modernisation:

The law aims to align with current business practices and reduce ambiguity in compliance.

 

 

Impact for Chartered Accountants and Tax Professionals

  • Easier interpretation and advisory due to simplified provisions
  • Reduced litigation scope over complex language
  • Need to update internal knowledge, systems, and client communication
  • Transitional challenges in mapping old sections to new provisions

Reliable Sources

  • CBDT Press Release dated 01.04.2026
  • Ministry of Finance notifications on Income-tax Act, 2025
  • Official publications on Central Board of Direct Taxes

Conclusion

The implementation of the Income-tax Act, 2025 is a major reform aimed at improving clarity and efficiency in tax compliance. Chartered accountants and tax professionals should proactively adapt to the new framework to guide clients effectively.