Guide

Objective and scope of the new Act: FAQs

Income Tax Department Free Beginner India

The Income Tax Department's own questions and answers on the Income-tax Act, 2025: what it replaces, the tax year, and how earlier years are handled.

  • The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026, and the 'tax year' replaces the previous year and assessment year, starting with 2026-27.
  • Tax years before 1 April 2026, with their pending assessments and appeals, continue under the 1961 Act.
  • Refunds, approvals and options already exercised, such as the new tax regime, carry over to the new Act.
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Curated reading that points you to the sources, not personalised investment advice.

It answers 2 questions

  1. What's the easiest way to file my taxes in India when my income is messy (salary, ESOPs, freelance, gains)?
  2. What does the new Income-tax Act, 2025 change for me personally?

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