Archive · 22 Aug 2025
India's President Approves New Income Tax Act
President Murmu signed off on a new Income Tax Act.
This new law updates and replaces the older tax rules from 1961.
It's designed to make taxes easier to understand and follow.
The government shared the news on Friday, and the new rules start on April 1, 2026.
It includes changes like new rules for deductions and handling tax refunds.
President Droupadi Murmu approved the Income Tax Act, 2025.
The new Act replaces the Income Tax Act, 1961.
The Finance Ministry announced the approval on Friday.
The Act aims for a simpler and more transparent tax system.
The Act will come into effect on April 1, 2026.
- Who
- President Droupadi Murmu and Indian taxpayers.
- What
- Approval of the Income Tax Act, 2025.
- When
- Approved on August 21, 2025, announced on Friday, effective April 1, 2026.
- Where
- India
- Why
- To modernize and simplify the tax framework.
- Act Name
- Income Tax Act, 2025
- Approval Date
- August 21, 2025
- Effective Date
- April 1, 2026
- Replaces
- Income Tax Act, 1961
- Ministry Announcement
- Friday, August 22, 2025
Sources
Income Tax: THESE deductions are allowed for taxpayers under old and new tax regimes
India Gets New Income Tax Act, 2025: Old Law Replaced After Six Decades, To Be Effective From April 2026
Income Tax Act 2025 Gets President's Assent: Centre Notifies New Rules To Replace 1961 Law
Income Tax Act 2025 notified, gets President’s approval, replaces six decade old law
IT Bill gets Presidential assent, new Act to be effective from April 1, 2026
