📢 Major Tax Reform: Income-tax Act, 2025

India’s tax system just got its biggest upgrade in 60 years! The Income-tax (No. 2) Bill, 2025 has received Presidential assent and will replace the 1961 Act.

✅ Effective From: April 1, 2026 (FY 2026–27)

🔑 Key Features of the New Act

1️⃣ For Salaried Individuals • Unified Tax Year → No more confusion between Assessment Year & Previous Year. • Higher Standard Deduction → Clearer and more beneficial for salary earners. • Faster Refunds → Digital-first, faceless assessments to reduce delays.

2️⃣ For Businesses & Startups • Simplified compliance → Sections reduced from 800+ to 536. • Clear rules for loss set-offs, depreciation, and carry forward of losses. • Easier dispute resolution through transparent, faceless procedures.

3️⃣ For Real Estate & House Property Owners • Updated provisions for house property income. • Clear deduction rules for pre-construction interest. • Streamlined reporting of rental income.

4️⃣ For Retirees & Pensioners • Defined rules for commuted pension taxation. • Transparent exemptions for retirement-related payouts.

5️⃣ For Investors & NRIs • Virtual Digital Assets (VDAs) explicitly covered under undisclosed income. • Simplified TDS/TCS rules. • Easier tax treatment for foreign income & double taxation relief.

6️⃣ For Charitable Institutions • Clear framework on anonymous donations. • Stronger compliance checks, but simplified reporting structure.

🎯 Government’s Aim • Build a simpler