India to Implement New Income Tax Act and Rules Affecting Salaried Taxpayers from April 2026

India's new Income Tax Act 2025 and proposed Income Tax Rules 2026 will take effect from April 1, 2026, introducing changes impacting salaried taxpayers. The updated framework revises valuation of employer-provided perquisites and may restore relevance to certain allowances within salary structures. Reporting requirements will become more detailed and technology-driven, with enhanced exemptions for those under the old tax regime, including expanded criteria for HRA and higher education allowances, according to experts and draft rules.