New Income Tax Law: Big news for taxpayers. The recently introduced Income Tax Act, which was launched last month, aims to minimize litigation, streamline compliance, and create a transparent, technology-oriented environment for taxpayers, according to a senior official who spoke on Tuesday. Vivek Wadekar, the Principal Chief Commissioner of Income Tax (Pr-CCIT) in Pune, discussed the shift from the six-decade-old Income Tax Act of 1961, noting that the previous legislation had become “bulky” after over 4,000 amendments, frequently resulting in disputes due to differing interpretations of its provisions.
“The Income Tax Act, 2025 has simplified the language, making it more accessible for both taxpayers and tax authorities to understand,” he stated. The new law is effective from April 1, 2026. The senior official emphasized that the department is focused on encouraging voluntary compliance and minimizing friction between taxpayers and authorities through digital initiatives and outreach programs.
To assist taxpayers, the Income Tax Department has introduced ‘Kar Saathi’, a 24×7 AI-driven chatbot designed to provide instant answers to queries. Additionally, the ‘Kar Setu’ initiative offers over 2,000 FAQs and educational brochures to help taxpayers grasp the provisions of the new law in straightforward language, he mentioned.
To enhance outreach in Maharashtra, educational booklets concerning exemptions and tax deducted at source (TDS) have also been published in Marathi, the official noted. Emphasizing reforms in processing and assessments, Wadekar pointed out that refunds are now automatically processed through the Centralized Processing Centre (CPC) in Bengaluru without any manual intervention.
He mentioned that complaints about “high-pitch” assessments often stem from communication issues, such as outdated email addresses or incorrect contact information provided by taxpayers. “Taxpayers should make sure their contact details are current to prevent discrepancies and facilitate smooth communication with the department,” he advised. The senior official announced that the Income Tax Department will host a Mega Event under the banner of “PRARAMBH.”
Meanwhile, As the time for filing ITR approaches, people begin gathering their documents. Although the deadline for the financial year 2025-26 is July 31, 2026, many people, in a hurry, file their returns in April or May. Tax experts say this haste can be detrimental. In fact, filing returns before June 15 is technically risky.
Why should one wait till June 15?
The most important documents for filing returns are Form 26AS and AIS. Banks and companies have until May 31st to submit your tax (TDS) information to the department. Experts say that even if companies upload the data, it takes until June 15th to fully update it in your government records. If you file your return before then, the information may be incomplete.