Overview
- The Income Tax Act, 2025 replaces the 1961 statute in a revenue‑neutral overhaul that does not alter personal or corporate rates.
- The code trims roughly half the text and sections and uses plainer language to reduce ambiguity and litigation.
- A single “tax year” replaces the previous‑year and assessment‑year split to simplify compliance.
- Taxpayers may claim TDS refunds even when returns are filed after the deadline without penal charges.
- Implementing rules and new return forms are being drafted and are expected after the FY27 Budget, whose proposals will be incorporated into the Act.