| Objective |
Direct tax law for India; gradually amended over decades |
Modernize, simplify, and streamline tax laws; align with digital economy |
Focus on clarity, compliance, and efficiency |
| Effective Date |
1 April 1962 |
1 April 2026 |
2025 Act will replace 1961 Act from this date |
| Number of Sections |
819 |
536 |
Reduced to simplify and remove redundancies |
| Number of Chapters |
47 |
23 |
Consolidation of provisions |
| Language & Structure |
Technical, complex legal language |
Simpler and easier to understand |
Aims to reduce compliance burden |
| Tax Rates |
As per annual budget |
Existing rates unchanged; future changes via budget |
No immediate change in rates for taxpayers |
| MAT / AMT |
Combined provisions; sometimes confusing |
Separated for clarity |
Easier compliance for companies |
| Faceless Assessment |
Not mandated |
Mandatory faceless system |
Reduces human interface and corruption |
| Digital Economy & Assets |
Not explicitly covered |
Virtual digital assets included under taxable income |
Legal clarity for cryptocurrencies, NFTs |
| Government Powers |
Existing administrative powers |
Enhanced powers to implement new tax schemes |
Improves efficiency and accountability |
| Dispute Resolution |
Transfer pricing, foreign companies handled specially |
Continues; panel for disputes maintained |
No major change, but aligned with new provisions |
| Pending Cases |
Governed by 1961 Act |
Old cases continue under 1961 Act |
Ensures smooth transition |
| International Agreements |
DTAs recognized |
DTAs retained and updated for modern transactions |
Prevents double taxation |
| Compliance Mode |
Physical filing, multiple interfaces |
Digital filing, real-time reporting |
Reduces paperwork, easier for taxpayers |
