Income Tax Act will get President Droupadi Murmus assent

President Droupadi Murmu has given her assent to the Income-tax Act, 2025, which is able to substitute the archaic Income Tax Act, 1961.

The Income Tax Act, 2025, will come into impact from the subsequent monetary yr, starting April 1, 2026. The new Act will make tax legal guidelines easy and scale back wordage within the laws, making it straightforward to know.

“The Income-tax Act, 2025, has received the Hon’ble President’s assent on August 21, 2025. A landmark reform replacing the 1961 Act, it ushers in a simpler, transparent & compliance-friendly direct tax regime,” the Income Tax division mentioned in a publish on X.

The Income Tax Bill, 2025, was handed by Parliament on August 12.

The new Act doesn’t impose any new tax charge and solely simplifies the language, which was required for understanding the complicated Income Tax legal guidelines.

The new legislation removes redundant provisions and archaic language and reduces the variety of Sections from 819 within the Income Tax Act of 1961 to 536 and the variety of chapters from 47 to 23.

The variety of phrases had been decreased from 5.12 lakh to 2.6 lakh within the new Income Tax Act, and for the primary time, it introduces 39 new tables and 40 new formulation, changing the dense textual content of the 1961 legislation to reinforce readability.