New Income Tax Act will come into effect April 1, 2026: FM Sitharaman

Whilst presenting her proposals for direct taxes, Finance Minister Nirmala Sitharaman informed the new Income Tax Act will come into effect April 1 this year.

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She added, the simplified new Income Tax rules would be notified “shortly”. “[This would be] giving adequate time to taxpayers to acquaint themselves with its requirements,” she stated, adding, “The forms have been redesigned such that ordinary citizens can comply without difficulty.”

In her ninth budget presentation, that is for the financial year 2025-26, the Finance Minister had called for a review of the Income Tax Act of 1961 to make it “concise, lucid, easy to read and understand”. The review aspired to address potential inefficiencies emanating from increased compliance costs for taxpayers and impeded direct tax administration.