Commencement of Income-tax Act, 2025 · 01 Apr 2026
CBDT press release · 01 Apr 2026
Official title
Income-tax Act, 2025 comes into force from 1st April, 2026
Official record
Open source pageSummary
Check the official recordWhat changed
The Income-tax Act, 2025 replaces the Income-tax Act, 1961. It simplifies the direct tax framework of India. The new Act uses simple language and a streamlined structure. It does not change the underlying tax policy. The Central Board of Direct Taxes notifies the Income-tax Rules, 2026 to support the new Act. Taxpayers use new simplified and standardized forms for compliance. The Act applies from 1st April, 2026.
What you must do
- Taxpayers must use the new simplified and standardized forms for compliance.
Key dates
- Date of passage by Parliament
- 12 Aug 2025
- Date of Presidential assent
- 21 Aug 2025
Document text
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 1st April, 2026
Press Release
Income-tax Act, 2025 comes into force from 1st April, 2026
The Income-tax Act, 2025, a landmark reform in India’s direct tax framework, represents a comprehensive effort to simplify and modernise the country’s income-tax law, replacing the six-decade-old Income-tax Act, 1961. It marks a shift towards greater clarity and ease of compliance through simple language, a streamlined structure and a reader-friendly presentation, without altering the underlying tax policy.
The Bill was passed by the Parliament on 12th August, 2025, and received the assent of the Hon’ble President of India on 21st August, 2025, thereby becoming the Income-tax Act, 2025. ( Gazette Notification – Income-tax Act, 2025)
The Income-tax Rules, 2026 were notified by the Central Board of Direct Taxes on 20th March, 2026 to operationalise the provisions of the new Act. (Gazette Notification – Income-tax Rules, 2026).
The corresponding new Forms have also been notified. The Forms have been simplified, standardized and process re-engineered to make compliance simpler.
With its coming into force from 1st April, 2026, the Income-tax Act, 2025 marks a new chapter in India’s tax administration and an important step towards Viksit Bharat.
(V. Rajitha)
Commissioner of Income Tax
(Media & Technical Policy) &
Official Spokesperson, CBDT
Source details
- Source
- Central Board of Direct Taxes / Income Tax Department
- Type
- press release
- Published by source
- 01 Apr 2026
- Issuing division
- Central Board of Direct Taxes
- Effective date
- 01 Apr 2026
- Coverage area
- direct-tax