Income Tax New Rules 2026: From April 1, 2026, a major change is going to take place in the income tax rules in the country. The new Income Tax Act, 2025, will replace the old Income Tax Act of 1961. The objective is to make the tax system simpler and easier to understand, so that common people can file their taxes without any difficulty.
The framework of the new Income Tax Act will remain similar to the old one, but the language and procedures will be simpler. This will reduce tax disputes and court cases, and taxpayers will be able to comply with the rules without fear.
📌 Also Read: EPF Withdrawals to Become Easier in 2026, Bringing Great Relief to Salaried Employees
No Tax on Income Up to ₹12 Lakh
The tax relief introduced in the 2025 budget will continue in 2026 as well. In the new tax system, there will be no tax on annual income up to ₹12 lakh. However, there will be no option for tax exemptions and deductions in this new system, but the tax slabs have been designed with lower rates. It is worth noting that a 5% tax will be levied on income between ₹4 lakh and ₹8 lakh. Additionally, income above ₹24 lakh will be taxed at 30%.
📌 Also Read: Silver Price Today - Silver drops up to Rs 23,000 – find out the 1 kg rates in 10 cities
Read Here: NIACL AO Mains 2025 Result PDF Link – How to Check Roll Number at newindia.co.in
Tax on Cigarettes and Pan Masala to Increase
📌 Also Read: Government Aid Transforms Women Lives, Schemes in These States Are Making a Difference
In 2026, an additional tax will be levied on some products. Excise duty on cigarettes will be increased, and a new cess will be imposed on pan masala. This tax will be levied separately in addition to GST.
No Major Changes in GST Rates
📌 Also Read: Vande Bharat Sleeper Train Hits 180 Kmph Without Spilling a Drop of Water
In 2026, GST rates will largely remain the same. Under the new GST system implemented in September 2025, taxes were reduced on approximately 375 goods and services. Now, most goods will have a GST of either 5% or 18%, while some products like tobacco will continue to have higher taxes as before.
Focus on Customs Duty Reforms
📌 Also Read: Great News for Digital Payment Users, 3% Discount on Train Tickets from This Date
After GST and Income Tax, the government will focus on customs duty reforms. In the Budget 2025-26, the number of customs tariff slabs was reduced to 8. Work is also underway to implement faceless assessment and digital processes to make import and export-related procedures easier, more transparent, and faster.
Read Here: SCSS for Retirement Security, Government May Announce New Interest Rate Today
📌 Also Read: Business Ideas: Start This Amazing Business With Low Capital, Earn Excellent Income in a Short Time
Benefits of the new tax rules
Tax rules will be easier to understand
📌 Also Read: Business Ideas: Start This Business as the Year Begins, Earn Bumper Profits
Disputes and conflicts will be reduced
Filing taxes digitally will save both time and money