Overview

• The Ministry of Law and Justice published the law in the Gazette after presidential assent on August 21, setting an April 1, 2026 start date.
• Officials describe the overhaul as a simplification exercise that does not introduce new taxes or change rates.
• The statute is streamlined to 536 sections and 23 chapters with the word count nearly halved, introducing 39 tables and 40 formulas for clarity.
• Authorities plan FAQs, simplified rules, and a reboot of Income Tax Department systems to operationalise the new framework.
• The government incorporated most Select Committee recommendations, including restoring refunds on late-filed returns, reinstating Section 80M, enabling Nil TDS certificates, and exempting anonymous donations to purely religious trusts.