Act 2025 Explained

The Old Act Was Repealed

The Income Tax Act 1961 was repealed on 1 April 2026. Here is what that means for you, what it does not change, and why the government rewrote the law.

The Income Tax Act 1961 was one of India's oldest and most-amended laws — altered more than 50 times in over six decades. On 1 April 2026, it was repealed and replaced by the Income Tax Act 2025.

The repeal is significant but not disruptive. If you have already filed ITR for 2025-26 or earlier years, those filings are not affected. For tax year 2026-27 (the return you file in 2027), the new Act governs everything.

Key facts

Repealed on 1 April 2026

The old Income Tax Act 1961 was repealed on 1 April 2026, the same day the Income Tax Act 2025 came into force. It no longer exists as Indian law.

2025 Act applies from tax year 2026-27

The 2025 Act governs all income earned from 1 April 2026 onwards. Tax returns filed in 2027 for the 2026-27 tax year are entirely under the new Act.

Existing tax disputes are not affected

If you have an ongoing ITR scrutiny, appeal, or refund claim from earlier tax years, those remain governed by the old Act's provisions as they stood at the time.

The new Act is written in plain language

The Income Tax Department describes the new Act as having simpler words and a clearer structure than the 1961 Act, which had been amended more than 50 times over six decades.

What changes — and what does not

Topic	What changed
The law itself	Income Tax Act 2025 replaces Income Tax Act 1961
Tax rates	New regime slabs apply (old regime still available as an option)
Filed ITRs for earlier years	Not affected — governed by the law that applied at the time
Ongoing tax disputes	Continue under the law as it stood for the relevant tax year
Your PAN	Not affected — PAN continues to be your tax identity under the new Act

Frequently asked questions

What does 'repeal' mean for my taxes?

It means the old Income Tax Act 1961 is no longer law. For tax year 2026-27 and beyond, you are taxed under the Income Tax Act 2025 only. Your past tax records are not erased — they remain valid.

Do I need to do anything differently because of the repeal?

Not directly. The repeal mainly affects how the law is written and structured. When you file ITR for 2026-27, your filing utility will use the new Act's provisions automatically. You do not need to take any special action because of the repeal itself.

Can I still refer to the old Act for past years?

Yes. For tax years before 2026-27, the old Act's provisions applied. If you are dealing with a tax dispute or amendment from an earlier year, the old Act is still the relevant law for that period.

Where can I read the official explanation of the repeal?

The Income Tax Department's new-act guidance at incometax.gov.in explains what changed and why the new Act was introduced. The notification bringing the Act into force was issued by the Ministry of Finance.

Sources: Income Tax Act 2025 · Income Tax Department Objective and scope of the New Act and new-act guidance (verified 2026-10-07). Last reviewed by FinWiz24 Research Desk.

Introduction