Your tax world will change from April 1. New simple provisions will replace 800 old rules:

News India Live, Digital Desk: The Indian government is going to take the biggest step ever towards tax reforms. In place of the old Income Tax Act which was in place since 1961, now Income Tax Act 2025 Will take. Finance Minister Nirmala Sitharaman has made it clear that its main objective is to eliminate the complex language of tax laws and make it easier for the common man to file returns.

1. Rise of ‘Tax Year’: Confusion of AY and PY will end

Till now we were confused about ‘Assessment Year’ (AY) and ‘Previous Year’ (PY). By abolishing both of these in the new law, only ‘Tax Year’ The word will be used. That means, the year in which you earn will be called your tax year. This will make tax calculations and record keeping simpler than ever.

2. Income tax slab: Big relief with the new budget

Under the Income Tax Act 2025, the new tax regime has been kept as ‘default’. The revised slabs as per Budget 2025-26 are as follows:

₹0 – ₹4 Lakh: Zero Tax (NIL)

₹4 – ₹8 Lakh: 5% tax

₹8 – ₹12 lakh: 10% tax

₹12 – ₹24 lakh: (Various slabs from 15% to 25%)

Above ₹24 lakh: 30% tax

Important thing: Those with annual income up to ₹12 lakh will get a tax reboot of up to ₹60,000, bringing their tax liability to ‘zero’.

3. New ‘capital gains’ rule on shares and mutual funds

If you invest in the stock market, share buyback Understand the rules carefully. Till now, the amount received from buyback was taxed as dividend, but from April 1, 2026, it will be taxed as dividend. ‘Capital Gains’ Will be considered. Additionally, STT (Securities Transaction Tax) on futures has been increased from 0.02% to 0.05%.

4. Big relief in TDS and TCS

Cost to a common man for traveling abroad and sending money abroad for children’s education TCS (Tax Collected at Source) Great relief has been given. Now instead of 5% or 20% only 2% TCS It will take. Also, now there will be no need to obtain a separate ‘TAN’ number for deducting TDS on purchasing property from an NRI, you will be able to manage with your ‘PAN’ only.

5. Digital and faceless assessment

new act completely ‘Digital-First’ Based on approach. The Income Tax Department will now be able to use your digital footprints (like social media, email and online trading accounts) for assessment. Faceless assessment has been made more transparent so that human intervention between tax officials and taxpayers is minimized.