Mumbai, May 8: The new Income Tax Act of 2025, which replaces the 64-year-old Income Tax Act of 1961, came into effect on April 1, 2026. To raise awareness about this change, the government is organizing public outreach programs. At an event in the country’s financial capital, Nirupama Kotharu, Chief Commissioner of Income Tax (IT & TP), informed the public about the Income Tax Act of 2025 and the Income Tax Rules of 2026.
In a conversation with a news agency after the event, Kotharu stated that the central government is continuously working to simplify the tax system for ordinary citizens. The new Income Tax Act of 2025 and the Income Tax Rules of 2026 aim to make the tax filing process easier and more understandable. She emphasized that India’s tax system is already very taxpayer-friendly, and these new changes will further assist people in understanding and filing their taxes.
Kotharu noted, “There has not been a significant change in the government’s tax policy, and India’s tax system remains quite favorable for taxpayers. Our tax rates are among the lowest in the world, thanks to the progressive budgets presented by the Finance Minister each year.”
She acknowledged that while the tax system is already quite simple, many people find the process complicated. There is a common misconception that filing taxes requires a chartered accountant, leading to confusion about how much tax applies to different income levels. This confusion often affects even honest taxpayers.
Kotharu further explained that the government’s goal is to connect more individuals to the tax system, but complex terminology and procedures often leave many behind. The new Income Tax Act of 2025 and the Income Tax Rules of 2026 have been introduced to help anyone easily understand their tax-related information and file their returns independently.
She highlighted that many technical terms in the new law have been simplified. For instance, terms like ‘Previous Year’ and ‘Assessment Year’ were previously difficult for the general public to grasp. Now, simpler and globally recognized terms like ‘Tax Year’ have been adopted, making it easier for people to understand the tax system.
The new rules are designed not only for professionals, entrepreneurs, or business owners but also for doctors, lawyers, salaried individuals, small business owners, and homemakers, ensuring that everyone can easily comprehend them. The government aims to create a tax system where every individual can complete their tax-related processes without hassle.
Kotharu also mentioned that the Income Tax Department has prepared brochures in 12 languages to enhance awareness. These include Hindi, Marathi, and several regional languages, allowing people from various parts of the country to understand tax rules in their native languages.
Additionally, she stated that the Income Tax Department’s website offers numerous digital facilities to assist taxpayers. Individuals can visit the official website, incometaxindia.gov.in, to obtain preliminary information. There is also a feature called ‘Income Tax Sathi’ and a chatbot available, where people can ask questions related to their income and taxes and receive immediate guidance.
Kotharu concluded by saying that the government’s aim is not just to increase tax collection but also to provide taxpayers with a seamless and trustworthy experience. The new income tax regulations will enhance transparency in the tax process, making the goal of ‘Pay Your Tax and Relax’ truly achievable for the general public.
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