Income Tax
New Income-tax Act 2025 in force: “Tax Year” replaces FY and AY, slabs unchanged
The Income-tax Act, 2025 replaced the 1961 law from 1 April 2026. Rates and the ₹12 lakh rebate continue; the big visible change is a single “Tax Year”.
The Income-tax Act, 2025 came into force on 1 April 2026, replacing the Income-tax Act, 1961. Parliament passed the new law in August 2025.
What changes for you
- The terms “previous year” and “assessment year” are replaced by one Tax Year — income earned from 1 April 2026 to 31 March 2027 is Tax Year 2026-27.
- Section numbers are renumbered, so forms may quote new sections for the same benefits.
What does not change
- New-regime slabs, the ₹12 lakh rebate and the ₹75,000 standard deduction continue.
- Income earned up to 31 March 2026 is still taxed under the 1961 Act.
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