In the Union Budget 2026-27, Finance Minister Nirmala Sitharaman announced a major overhaul of India’s tax framework aimed at simplifying compliance and enhancing ease of living for taxpayers.
Highlighting the milestone, the Finance Minister stated, “In July 2024, I announced a comprehensive review of the Income Tax Act, 1961. This review has been completed in record time, and the Income Tax Act 2025 will come into effect from April 1, 2026.”
As part of the reform, tax forms have been redesigned to make filing straightforward for ordinary citizens, reducing complexity and minimizing the need for expert intervention. The new Act emphasizes clarity, transparency, and user-friendly processes, allowing taxpayers to comply without difficulty.
The Finance Minister underscored that this change is part of the government’s broader effort to make financial compliance less cumbersome while maintaining robust governance. By modernizing the tax framework, the government aims to foster a more efficient and citizen-friendly system that aligns with India’s digital and economic growth ambitions.
With the new Income Tax Act coming into effect, taxpayers can expect simplified procedures, clearer guidelines, and reduced compliance burdens, marking a significant step towards a more transparent and accessible tax ecosystem in India.