Income tax
Income-tax Act, 2025 replaces the Income-tax Act, 1961 - assented 21 August 2025
- Effective
- 2026-04-01
- Published
- 2025-08-21
- Authority
- Ministry of Law and Justice (Legislative Department), Government of India
- Notification
- Act No. 30 of 2025
The Income-tax Bill, 2025 was passed by Parliament on 12 August 2025 and received the President's assent on 21 August 2025, becoming Act No. 30 of 2025. It consolidates and rewrites the direct tax law in place of the six-decade-old Income-tax Act, 1961, using plainer language and a restructured layout without changing underlying tax policy. Section 1(3) of the Act provides that, save as otherwise provided, it comes into force on 1 April 2026.
Read from the gazette PDF. The Act introduces the concept of a 'tax year' in place of 'previous year' and 'assessment year'.
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