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.