The new Income-tax Act, 2025 Farewell to the 65-year-old law
In the picture, you can see the Parliament House, from where the biggest project in India's tax history was approved. In fact, on the morning of April 1, 2026, the new Income Tax Act, 2025 came into force. Now the old law of 1961 has become history. A total of 819 sections have been reduced to 536 in the new law, and the language has been made easy so that the common man can also understand. You are relieved that no changes have been made in the tax slabs, just the rules have become easier to read and understand than before.
Date of filing ITR Now you'll have more time
In this picture, a person is filling the income tax return (ITR) form on the computer, but there is no haste on his face. The reason? The government has given more time to some taxpayers to file ITR. If you file ITR-3 or ITR-4 (business or professional income) and you are not audited, you will now get time till August 31, which was earlier July 31. However, for ITR-1 and ITR-2 (salary, pension, other income), the deadline of July 31 remains the same as before.
Revised return More chance to correct a mistake, but with a fee
In the picture, a man is seen running an erase pen on the old ITR form, which is a symbol of correcting a mistake. Well, now you will get more time than before to improve ITR. The government has extended the deadline for filing revised returns from December 31 to March 31. Now you have 12 months. But here's the important part: You will have to pay an additional fee if you file a revised return after December 31. By the way belated return
Alcohol, scrap and minerals TCS growth
In this picture, liquor shops, scrap heaps and coal mines are seen, that is, those things which will now be taxed more. TCS on sale of liquor has been increased from 1% to 2% with effect from April 1, 2026. TCS on sale of scrap, coal, lignite and iron ore has also been increased from 1% to 2%. However, a matter of relief is that the TCS on tendu leaf has been reduced from 5% to 2%. That is, in total, more tax will now have to be deposited on these items.
Travel Abroad - TCS Now Simple and Cheap
In this photo, a family is seen excited to travel abroad with a suitcase at the airport. The special thing is that now they will get relief from the hassle of TCS. The government has simplified the TCS on foreign travel packages under the LRS (Liberalised Remittance Scheme). Earlier, 20% TCS was levied on 5% and above up to ₹10 lakh, but now a flat rate of 2% will be applicable on all amounts. At the same time, TCS on foreign remittances for education and treatment has also been reduced from 5% to 2%. That's your foreign dream.
Stock market F & O trading is now more expensive
In the picture, a chart of the stock market is seen on a screen and a trader is upset. Why? Futures and options (F & O) trading has become quite expensive since April 1. The government has increased the Securities Transaction Tax (STT). STT on futures has been increased from 0.02% to 0.05% (i.e. an increase of 150%). At the same time, STT on the option has increased from 0.1% to 0.1 5%. That is, now trading in F & O will be much more expensive than before, and experts fear that this may affect the volume.
Share buyback Promoters will have to pay tax at different rates
In the picture, the board meeting of a company is underway, where the decision of share buyback is being taken. That is, there has been a big change in the world of promoters. Now the new tax has been implemented on share buyback by companies. Capital gains tax will now be levied on the amount received from the buyback. Earlier it was considered as deemed dividend. Promoters will have to pay tax at different rates - 22% to corporate promoters and 30% to non-corporate promoters. That is, the
Dividend - Now there will be no discount on the interest of the loan
In this picture, an investor is looking at the dividend cheque enthusiastically, but he is about to receive a bad news. Actually, there has been a big change on dividend income. Now you will not be able to take any deduction on the interest of the loan taken to earn dividends. Earlier, it used to get a discount of up to 20%, but now this facility has been abolished. This means that now you will have to pay tax according to your tax slab on the entire amount of dividend. That is, investors are now full of dividends.
ITR-3 and ITR-4 Time until August 31.
The image shows a chart showing the deadline for ITR-3 and ITR-4 as August 31, which was earlier July 31. That is, there is relief news for industrialists, professionals and partnership firms. If you are a business or professional income and you are not audited, then you have got one month's additional time to file ITR. However, the deadline for tax audit will remain October 31. That is, now you will have more time to fill the ITR of your business correctly.
PAN Card - Now it is also necessary on these transactions
The last picture shows the PAN card, which has now become necessary in some other transactions as well. In the new law, the government has empowered the CBDT to make PAN card mandatory even for non-business, non-professional transactions. It was already mandatory to provide PAN for jewellery purchases of more than ₹2 lakh, and now the CBDT can bring many more transactions under this ambit. That is, the government has given itself more powers to keep an eye on big expenses.