New Income Tax Act: Central Board of Direct Taxes (CBDT) Chairman Ravi Agarwal has given an important message to Income Tax Department officials at the beginning of the new year. He said that the year 2026 will be very important for the department, as a new income tax law will be implemented in the country from April 1, 2026. The Income Tax Act of 1961, which is almost 60 years old, will be replaced by the Income Tax Act 2025.

In his January 1st message, Ravi Agarwal asked officials to be fully prepared for the upcoming changes. He informed them that new rules, procedures, and forms are currently being prepared, and training for officials is also underway. He clearly stated that in the coming months, officers should focus on understanding the new law and its intent so that they can provide accurate and clear information to taxpayers.

The new Income Tax Bill 2025 will also impact ITR filing this year. This law will be implemented across the country from April 2026 and will directly affect common taxpayers. It is essential for those who file income tax returns every year to understand these changes.

Under the new Income Tax Bill 2025, the government has attempted to address the complexities of the old law. The language of the law will be simplified and made clearer so that ordinary people can easily understand it. The concepts of ‘Previous Year’ and ‘Assessment Year’ will be replaced with the concept of ‘Tax Year’, which will reduce confusion.

This new law will grant more powers to the CBDT to further strengthen the digital process. The entire law will be organized into 536 sections and 16 schedules, making it easier to read and understand. Additionally, the facility of zero TDS certificates will be provided, and Section 80M related to tax on dividends will be reintroduced. One significant change is that even if a taxpayer files their ITR after the deadline, their refund will not be unnecessarily delayed. The old rules related to this are being removed.

This law could prove beneficial for new taxpayers in many ways. It aims to simplify the tax process, reduce legal disputes, and provide relief to MSMEs and ordinary taxpayers from unnecessary litigation. Overall, the new income tax law is considered a major step towards making India’s tax system more transparent and user-friendly.