Finance Minister Nirmala Sitharaman on Sunday announced that the Income Tax Act, 2025 will come into force from April 1, replacing the six-decade-old existing tax law.
Presenting the Union Budget 2026–27 in the Lok Sabha, she said the new direct tax code has been completed in record time, and all tax changes announced in the current Budget will be incorporated into the updated legislation.
The government will soon notify simplified income tax rules and return forms, providing taxpayers adequate time to understand and comply with the new framework.