Finance Minister Nirmala Sitharaman Announces New Income Tax Act 2025 to Simplify Compliance from April 2026

In a significant move during the Union Budget 2026 session, Finance Minister Nirmala Sitharaman said, “In July 2024 I announced a comprehensive review of the Income Tax Act 1961. This was completed in a record time and the Income Tax Act 2025 will come into effect from 1st April 2026.” She added that the simplified income tax rules and forms will be notified shortly, giving taxpayers sufficient time to familiarize themselves with the new provisions. The new framework aims to make tax compliance easier for both individuals and organizations. “The forms have been redefined such that organizations can comply without difficulty,” the Finance Minister stated, emphasizing the government’s focus on transparency and user-friendly processes. This reform marks a historic step in streamlining India’s tax system, reducing procedural complexity, and enhancing efficiency for millions of taxpayers across the country.