India's new Income Tax Act, 2025, will replace the 1961 law starting April 1, aiming to simplify direct tax legislation. The revenue-neutral act introduces no changes to tax rates but reduces text volume by 50%, clarifies ambiguities, and lessens litigation scope. Key changes include a unified 'tax year' framework and allowing TDS refunds for late ITR filings without penalties. Rules for the new law are being finalized and will be notified post-FY27 Budget.