♦ President Droupadi Murmu has given her assent to the Income-tax Act, 2025 on 22 August, which will replace the archaic Income Tax Act, 1961.

♦ The Income Tax Act, 2025, will come into effect from 2026 April 1. 

♦ The new Act will make tax laws simple and reduce wordage in the legislation, making it easy to understand.

♦ The new law removes redundant provisions and archaic language and reduces the number of Sections from 819 in the Income Tax Act of 1961 to 536 and the number of chapters from 47 to 23.

♦ The number of words had been reduced from 5.12 lakh to 2.6 lakh in the new Income Tax Act, and for the first time, it introduces 39 new tables and 40 new formulas, replacing the dense text of the 1961 law to enhance clarity.