The Income Tax Act, 2025 is a brand-new law that will replace the old Income-Tax Act of 1961. The main goal is to make tax laws shorter & simpler.
New Income Tax Act 2025 - Economy UPSC Notes
Understanding the New Income Tax Act, 2025 The Income Tax Act, 2025 is a brand-new law that will replace the old Income-Tax Act of 1961. The main goal of this change is to make tax laws shorter, simpler, and more modern for everyone. Read: Income Tax Act, 1961 vs Income Tax Act, 2025 - UPSC notes Here are the key things you need to know about the new Act: When It Starts The new law will come into effect on April 1, 2026. Simplified Law The new Act uses simpler language and is much shorter than the old one. This makes it easier for people to understand their tax obligations. Two important tax rules, Minimum Alternate Tax (MAT) and Alternate Minimum Tax (AMT), have been separated to make them clearer. What Stays the Same Tax Rates: There are no changes to the existing tax rates for individuals or companies. Any changes to tax rates will still be announced in the yearly budget. Penalties: The rules for offenses and penalties remain unchanged. Definitions: Most of the important definitions from the o…
