Navigating the New Income Tax Act, 2025 - Key Updates: Part 3

We are pleased to present Part 3 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. If you missed the earlier editions, you can access [Part 1] and [Part 2] of the series 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). Effective from 1 April 2026, the new Act marks 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 3 of our series, we outline the major updates introduced following the PSC’s recommendations on the Original Bill (introduced in February 2025). We also provide a comparative analysis of the relevant provisions under the old Act. To enhance readability, the updates have been presented in a clear and concise manner.

This is the third instalment in our ongoing series. We will continue to share further updates in due course, covering additional provisions and offering deeper insights into the new Act. We hope you find this edition informative and valuable.

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.