Income Tax Act 1961: The government will implement the new Income Tax Act 2025 in two months. The new law will replace the more than 60-year-old Income Tax Act, 1961. Since its implementation, several amendments have been made.

Income Tax Act 2025: If you pay income tax every year, this news is relevant to you. Yes, a new Income Tax Act will be implemented in the country on April 1, 2026. With its implementation, many things will change. The government will replace the old Income Tax Act, 1961, with the Income Tax Act, 2025. The current Income Tax Act is over 60 years old and has been amended thousands of times. The new Income Tax Act will be simple, transparent, and completely digital. Its terminology will be easy for the common person to understand, making it easier for them to pay taxes.

Fast refunds, no paperwork

The new law aims to reduce tax notices, expedite refund processing, and eliminate the old paperwork. The government's goal is to create a fear-free tax environment, making tax filing easier and preventing disputes from turning into lengthy litigation. The old law's language was complex and difficult for ordinary people to understand. The new law will be written in simple language, reducing dependence on professionals.

Will the middle class receive relief?
The relief provided in the 2025 budget will continue in 2026. The new tax regime will exempt income up to ₹12 lakh annually from taxes. This new regime is very beneficial for salaried individuals. However, the new regime will not provide deductions for insurance, home loans, or savings plans. Nevertheless, the lower taxes and higher exemption limits will significantly benefit the salaried class.

Stability in GST, no major changes.
Major reforms were implemented in GST in September 2025. Under this, GST rates were reduced on approximately 375 goods and services. Most items now fall under the 5% or 18% GST slab. 2026 will be the first full year of GST, so no rate changes are expected this time. The focus will be on digitization and preventing evasion.

Major changes to customs duties?
The 2025-26 budget reduced the customs tariff slabs to just eight. Faceless assessment and a fully digital process have been introduced. This will simplify imports and exports, speed up clearances, and strengthen India's position in the global supply chain. This could reduce business costs and increase competition.

Tobacco, cigarettes, and tobacco will remain subject to high taxes and cess, making them more expensive. Meanwhile, digitization and rationalized customs duties could lead to cheaper prices for electronics, mobile phones, and some imported parts. This change is a major step toward modernizing, simplifying, and making the tax system reliable. Everyone, from the common man to businesses, will benefit.

 PC: Zee News