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Income Tax Act 2025 Has Replaced the 1961 Act: What Every Tax Professional Must Know

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Particulars Details
Old Act Income Tax Act, 1961
New Act Income Tax Act, 2025
Date of Presidential Assent 21 August 2025
Effective Date 01 April 2026
Old Act Sections 819 sections + 14 schedules
New Act Sections 536 sections + 16 schedules
Old Rules IT Rules, 1962 (511 rules, 399 forms)
New Rules IT Rules, 2026 (333 rules, 190 forms)
Tax Rates Changed? No — zero change in rates or slabs
New Taxes Introduced? No
Governing Authority Section 536 (Repeal & Savings)

Income Tax Act 2025 — Complete Professional Guide to India’s New Tax Law: What Changed, What Didn’t, and What You Must Do Now (Effective 01 April 2026)

On 21 August 2025, the President of India gave assent to the Income Tax Act, 2025 — the most significant structural transformation of India’s direct tax framework in over six decades. With effect from 01 April 2026, the Income Tax Act, 1961, which had governed Indian taxation since the era of the Second Five-Year Plan, stands repealed.

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