President Murmu Gives Assent to New Income Tax Act, 2025

President Droupadi Murmu has given her assent to the Income-tax Act, 2025, marking a historic reform in India’s taxation framework by replacing the six-decade-old Income Tax Act of 1961.

The new law, which will come into effect from April 1, 2026, aims to simplify tax provisions, cut down on legal complexities, and make compliance easier for individuals as well as businesses.

In a statement posted on X, the Income Tax Department said: “The Income-tax Act, 2025, has received the Hon’ble President’s assent on August 21, 2025. A landmark reform replacing the 1961 Act, it ushers in a simpler, transparent & compliance-friendly direct tax regime.”

The Income Tax Act, 1961, has long been criticised for its voluminous structure and complex provisions. The government said the new law has been drafted with the twin objectives of clarity and ease of compliance, reducing wordage while retaining essential safeguards.

With the President’s assent, the Act paves the way for India’s biggest direct tax reform in decades, promising a taxpayer-friendly regime aligned with modern economic realities.