“Income-tax Act, 2025: What Every Taxpayer Must Know Before April 2026”

The Income-tax Act, 2025, as announced by the Direct Taxes Committee (DTC) of ICAI, marks a generational shift in India’s tax framework. Slated to come into force from 1st April 2026, this reform aligns India’s direct taxation with modern compliance, digital governance, and international best practices.

The DTC’s publication, “Income-tax Act, 2025 including Tabular Mapping vis-à-vis the Income-tax Act, 1961”, helps taxpayers and professionals transition smoothly from the 1961 framework. The new Act aims to simplify compliance, reduce litigation, and adopt a uniform digital reporting ecosystem.

Some key expected highlights include:

  • Rationalized slab rates and deductions: aligning with the government’s push toward a simplified new tax regime.
  • Streamlined tax audit and reporting: leveraging the revised Guidance Note under Section 44AB for AI-enabled compliance checks.
  • Digital-first administration: all returns, appeals, and notices to be digitally traceable under e-assessment provisions.

For professionals, the biggest advantage lies in predictability — a move from interpretative complexity to codified clarity. As April 2026 approaches, businesses must start gap assessments of internal systems to align with new audit thresholds and disclosure formats.

“GST Reforms 2025: How India’s Indirect Tax System Is Entering Its Next Phase”

GST reforms 2025, GST future India, GST simplification, indirect tax India

The 2025 GST reforms represent India’s next phase of tax modernization. From rationalizing rates to enhancing digital compliance and streamlining dispute resolution, the government’s focus is clear — a seamless, technology-driven GST ecosystem.

The introduction of AI-based return validation, proposed under the upcoming GSTN upgrade, will automate data cross-verification. Simultaneously, amendments in refund processing and interest computation mechanisms will bring much-needed relief to exporters and small businesses.

These reforms align with the recommendations of the ICAI GST Committee, emphasizing ease of doing business and taxpayer education.

For CAs and consultants, 2025 is the year to go beyond compliance — it’s time to become strategic GST partners guiding clients toward proactive governance.

“Input Tax Credit Under Scrutiny: The 2025 Reforms You Can’t Ignore”

input tax credit 2025, GST ITC rules, GSTR-2B, GST audit, ITC reversal

With the 2025 GST amendments tightening ITC eligibility, businesses are feeling the heat. The revised rules mandate that ITC can be claimed only if suppliers have filed their GSTR-1 and paid tax in GSTR-3B.

This change, aimed at plugging fake credit claims, has made vendor compliance tracking a necessity. Notifications 265 and 266 (2025) introduced stricter timelines for ITC reversal, meaning even minor delays by vendors can impact working capital.

The ICAI GST & Indirect Taxes Committee recommends adopting robust ITC tracking mechanisms, conducting monthly GSTR-2B reconciliations, and maintaining an internal ITC ledger review.

CAs and consultants play a pivotal role here — educating clients about vendor hygiene, reconciliation practices, and technology integration will determine compliance success in 2025.