New Income Tax Rule: A new Income Tax Act will be implemented in India on April 1, 2026. The central government has decided to retire the 64-year-old Income Tax Act of 1961. It will be replaced by a new, modern, and simplified Income Tax Act. The primary objective of this new law is to eliminate tax complexities and make the process transparent for taxpayers.
Add informalnewz.com as a Preferred Source
New Income Tax Rule: A new Income Tax Act will be implemented in India from April 1, 2026. The central government has decided to retire the 64-year-old Income Tax Act, 1961. It will be replaced by a new, modern, and simplified Income Tax Act. The primary objective of this new law is to eliminate tax complexities and make the process transparent for taxpayers. What will be the four biggest changes in the new Income Tax Act? Let’s find out.
1. The hassle of ‘previous year’ and ‘assessment year’ will end
Until now, income tax required the calculation of two different years. The year you earned was called the ‘previous year,’ and the year you filed your tax return was called the ‘assessment year.’ This was always confusing for the common person.
What will change now: From April 1, 2026, there will be only one ‘tax year.’ Tax filing and calculations will be made for the year you earn between April 1 and March 31. This will make the process simple and straightforward.
2. Social Media (WhatsApp/Instagram) Access
Recently, there was talk that tax officials would now monitor your social media activity. They would be able to access your Instagram posts and other social media handles. However, this is not entirely true. While the new law grants digital access, it is only for serious cases of “serious tax evasion.”
Tax officers cannot access someone’s personal WhatsApp or Instagram accounts without a search warrant. The department must follow legal procedures and obtain a proper search warrant. Honest taxpayers need not worry.
3. TDS refund even for late filing of ITR
This is a significant relief for middle-class and working individuals. Under the old law, if you missed the deadline for filing your return, your TDS refund would be blocked. However, under the new rules, you will now receive your refund even if you file a “belated return,” i.e., late.
However, you will have to pay a late fee. If your income is less than ₹5 lakh, the late fee will be ₹1,000, and if your income is more than ₹5,000. But the good news is that your hard-earned money won’t be lost.
4. Sovereign Gold Bonds (SGBs) will now be taxed
Sovereign Gold Bonds were previously considered the safest and most tax-free investment option, but the new Act has changed its rules. According to the new income tax, if you purchased SGBs from the stock market, you will now be taxed at a rate of 12.5% on the profits earned. Previously, these bonds were completely tax-free. However, tax exemptions may continue for those who hold the bonds until maturity.
