Representative image indicating income tax.
Credit: iStock Photo
New Delhi: The central government has formally notified the Income-Tax Act, 2025 that will come into force from April 1, 2026 replacing the over six-decade old legislation on the country's indirect tax system.
The Act, which was passed in Parliament earlier this month, received the President’s assent on August 21, 2025.
The Legislative Department of the Ministry of Law and Justice issued a notification in this regard with the same date.
"The following Act of Parliament received the assent of the President on the 21st August, 2025 and is hereby published for general information," the Ministry of Law and Justice noted in the gazette notification.
The Act seeks to consolidate and amend the law relating to income-tax.
"Save as otherwise provided in this Act, it shall come into force on the 1st April, 2026," it said.
The current income tax framework in the country is governed by the Income Tax Act, 1961. Though this over six-decade old legislation has been replaced with a new Act, it will remain in effect till the end of this financial year. The new Act has simplified the language and removed redundant provisions.
The new Act has introduced the concept of “tax year”, which has been defined as the 12-month period beginning April 1.