Overview

• The government published the new law in the Official Gazette on August 22 after President Droupadi Murmu’s assent on August 21, with implementation slated for April 1, 2026.
• The statute condenses the code from 819 to 536 sections and from 47 to 23 chapters, halves the word count, and introduces 39 tables and 40 formulas to clarify rules.
• Parliament advanced a consolidated Bill No. 2 after the government accepted almost all recommendations of the Select Committee.
• Changes adopted include restoring the inter‑corporate dividend deduction under Section 80M, allowing nil‑TDS certificates, permitting refunds on late-filed returns, and exempting anonymous donations to purely religious trusts.
• Preparations now shift to issuing FAQs and rules and upgrading IT systems, while existing slab rates remain, “Tax Year” replaces AY and FY, and the definition enabling access to “virtual digital space” during searches is retained.