Hours after receiving the Presidential Assent, the New Income Tax Act, 2025 has been officially published in the Gazette of India! This marks an important development in Indian taxation, as the new Act seeks to consolidate, simplify, and modernize the existing provisions of income tax law.
| Legislation | Income Tax Act, 2025 |
| Published By | Ministry of Law and Justice |
| Published In | Gazette of India – Extraordinary, Part II |
| Published On | 21 August, 2025 |
| Date of coming into Effect | 01 April, 2026 |
Significance of the Income Tax Act being Notified
An Act is required to be published in the Official Gazette because the publication serves as the official method of bringing the Act into the public domain and notifying the people at large. Publication in the Gazette is often a mandatory legal requirement for an Act to come into force. Generally Acts specify that they will become operative only from the date of notification in the Official Gazette. Until this is done, the Act may not be enforceable, even after receiving the necessary approvals from Parliament and the President.
Steps Ahead
With presidential assent and publication in the gazette, the Income Tax Act, 2025 is all set to come into effect on April 1, 2026. As a logical next step, the Ministry of Finance through the Central Board of Direct Taxes (CBDT) is expected to release Rules, Guidelines and Forms in relation to the new act, aligning with the new sections and updations removing the existing redundant rules and forms.
Professional bodies such as the Institute of Chartered Accountants of India (ICAI), the Institute of Company Secretaries of India (ICSI) and other tax associations are expected to release guidance notes, explanatory material and interpretations for the use of the general public.
Tax Professionals and Tax Payers can expect transitioning provisions and get used to new forms and the rules. With the first return of income under the new Income Tax Act is set to be filed only during after the month of May 2027, it is highly probable that smooth transitioning of procedures is a reality. Compliance requirements under the New Act and Rules must be looked into carefully.
