Income Tax
Income-tax Act, 2025 — Meaning
India's new income tax law, in force from 1 April 2026, replacing the Income-tax Act, 1961.
What is Income-tax Act, 2025?
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. It introduces the 'tax year' in place of the previous year/assessment year pair, renumbers sections and forms, and consolidates provisions such as TDS into tables, while largely keeping tax rates and the structure of the new regime. Returns for FY 2025-26 (AY 2026-27) are still filed under the 1961 Act; the new Act and the Income-tax Rules, 2026 apply from tax year 2026-27. Familiar forms got new numbers — for example Form 24Q became Form 138 and Form 3CEB became Form 48.
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More Income Tax terms
ITR (Income Tax Return)
Annual declaration filed with India's Income Tax Department reporting income, deductions and tax paid.
AY (Assessment Year)
The year in which income earned in the previous financial year is assessed and taxed.
FY (Financial Year)
The 12-month period from April 1 to March 31 during which income is earned and recorded.
PAN (Permanent Account Number)
Unique 10-character alphanumeric identifier issued by the Income Tax Department to every taxpayer.
TAN (Tax Deduction Account Number)
10-character number required by entities that deduct or collect tax at source (TDS/TCS).
