Navigating the New Income Tax Act, 2025 - Key Updates: Part 2

We are pleased to present the Part 2 of our series, Navigating the New Income Tax Act, 2025. In this edition, we continue to provide a detailed overview of the structural and compliance-related aspects of the new Act. In case you missed it, Part 1 of the series can be accessed [here].

The Income Tax Act, 2025 (the new Act), has recently been enacted, introducing several structural changes while retaining the core intent of the earlier Income Tax Act, 1961 (the old Act). The new Act will come into effect from 1 April 2026, replacing the old legislation. This represents a significant step toward a more simplified and modern tax framework.

The enactment of the new Act is the outcome of an extensive review and stakeholder consultation process, incorporating key recommendations of the Parliamentary Select Committee (PSC).

In this Part 2 of our series, we outline the major updates introduced following the PSC’s recommendations on the Original Bill (introduced in February 2025) and provide a comparative view with the provisions under the old Act. For ease of reference, the update has been presented in a clear and concise manner.

This is the second part of our communication, and we will continue to share subsequent updates with you in due course, covering additional provisions and providing deeper analysis. We trust you will find this update useful.

At AKM Global, we remain committed to keeping you informed and supporting a smooth transition to the new framework. For any queries or further assistance, please feel free to contact us at info@akmglobal.in for any queries.