Budget 2026-27: New Income Tax Act to roll out from April 1, forms to be notified

Contributing sentiments towards policy:

60% : In her Budget speech in the Lok Sabha on Sunday, she said, "This (direct tax code) was completed in record time and the Income Tax Act 2025 will come into effect from first April 2026.
58% : The new law simplifies the tax timeline by doing away with the distinction between the assessment year and the previous year, replacing it with a single "tax year" framework.
57% : New Delhi, Feb 1: Finance Minister Nirmala Sitharaman, on Sunday, said the Income Tax Act, 2025 will be implemented from April 1 and rules and tax returns forms will be notified shortly.
55% : The simplified income tax rules and forms will be notified shortly, giving adequate time to taxpayers to acquaint themselves with its requirements.
54% : Sitharaman also proposed to increase time limit for filing revised income tax (I-T) return from December 31 to March 31, on payment of nominal fee.
54% : Tax Collected at Source (TCS) rate on sale of overseas tour packages was announced to cut to 2 per cent from 5 per cent.
50% : It reduces text volume and sections by about 50% vis-a-vis the 1961 Income Tax Act.
48% : The 2025 I-T law is revenue neutral with no change in tax rates.
48% : In her Budget speech, Sitharaman announced a proposal to exempt award given by Motor Accident Claims Tribunal from income tax.
45% : It has only made direct tax laws simple to understand, removed ambiguities, thereby reducing scope for litigations.
43% : Beginning April 1, the Income Tax Act, 2025, will come into force replacing the six-decade-old tax law and the changes made in tax laws in 2026-27 Budget will be incorporated in the new legislation.

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