Polity & Governance GS 2 In the news 15 times

Income Tax Act, 2025

Replacing the 1961 Act

The Income Tax Act, 2025 repeals and replaces the Income Tax Act, 1961, India's principal direct tax legislation for over six decades. The new Act was framed as a simplification exercise: consolidating provisions, removing redundant language, and reorganising the statute into a more logical structure, without altering the underlying tax policy (rates, slabs, and incentive structures were meant to carry over).

Key details

The Income Tax Act, 1961 stands repealed with effect from April 1, 2026 (applicable from Tax Year 2026–27); income earned up to March 31, 2026 continues to be governed by the 1961 Act via transitional provisions
The new Act condenses the statute to 536 sections and 16 schedules, down from 819 sections and 14 schedules in the 1961 Act; subordinate rules and forms were similarly reduced (333 rules/190 forms versus 511 rules/399 forms)
Explanations and provisos scattered across the old Act were folded into main sections, and verbose narrative provisions were replaced with tables and formulas
The reorganisation was carried out via a Select Committee process before passage, distinct from the ordinary Standing Committee route used for most legislation

In the news

● Tracked since February 07, 2026 · last seen September 03, 2026 · updates as the daily brief publishes

03 Sep '26

Parliamentary Committee Reviews New Income Tax Act: Enforcement, Compliance and Taxpayer-Reliance Concerns

Economics

09 Aug '26

Rajya Sabha to Consider Taxation Amendment and Bankers' Books Evidence Bills

Polity & Governance

06 Aug '26

New 15-Year Tax Exemption Aims to Make India a Global Rough Diamond Trading Hub

Economics

04 Aug '26