The government has formally notified the Income-tax Act, 2025, marking a significant overhaul of India’s income tax framework. The Act, which consolidates and amends existing tax laws, received the President’s assent on August 21, 2025, as per a gazette notification issued by the Ministry of Law and Justice.

The new legislation will extend to the entire country and is set to come into effect from April 1, 2026, unless specified otherwise. Officially titled the Income-tax Act, 2025, the law replaces the long-standing Income-tax Act, 1961, which has governed the country’s taxation system for more than six decades.

The Act was passed by both Houses of Parliament and is expected to simplify, modernize, and streamline income tax provisions, providing clarity and updated regulations for taxpayers and authorities alike.