Income-tax Act, 2025 Replaces the 1961 Income-tax Act

On 1 April 2026, the Income-tax Act, 2025 came into force and replaced the Income-tax Act, 1961 as India’s principal direct-tax statute. The new Act reorganised and simplified the law’s structure and language while preserving the underlying tax-policy framework, and was accompanied by new Income-tax Rules, 2026 and forms. Transitional provisions preserved proceedings and liabilities arising under the repealed 1961 Act.