India Prepares for Income Tax Act 2025 Rollout Amid Rising Adoption of New Tax Regime

The Indian government plans to implement the Income Tax Act, 2025 from April 1, 2026, introducing new tax forms, rules, and FAQs to facilitate transition. About 88% of individual taxpayers have adopted the new tax regime, which offers lower rates but fewer exemptions, while the old regime remains available without a sunset clause. Budget 2026 maintained existing tax slabs and clarified deductions, including home loan interest treatment. Reforms also focus on simplifying compliance, decriminalising minor defaults, and enhancing taxpayer services.