Overview
- The Income-tax Act, 2025 replaces the 1961 code from April 1, 2026, streamlining the statute with fewer sections, extensive tables and formulas, and expanded use of faceless digital processes.
- GST rationalisation effective September 22 cut rates on roughly 375 items and compressed slabs to 5% and 18%, with a 40% levy retained for sin goods.
- Collections peaked at Rs 2.37 lakh crore in April before sliding to a year-low Rs 1.70 lakh crore in November, reflecting the full impact of the GST rate cuts.
- The 2025 Budget made income up to Rs 12 lakh effectively tax-free under the new regime, while non-corporate direct-tax growth slowed and refunds fell 14% amid heightened scrutiny.
- The government signalled customs simplification and duty-rate tweaks next, with additional excise on cigarettes and a pan masala cess to take effect on dates to be notified.