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Income Tax Act
The Supreme Court on Tuesday highlighted the practical difficulties faced by investigators in the digital age and said giving a prior notice before a search and seizure could effectively end an investigation before it begins. The top court was hearing a PIL challenging the scope of search and seizure powers under Section 132 of the Income Tax Act on the ground that it has the potential of misuse by the authorities. Section 132 of the Income Tax Act empowers IT officials to conduct a search and seizure when they have "reason to believe" that a person has undisclosed income, assets, or documents. A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and N V Anjaria heard submissions by senior advocate Sanjay Hegde, appearing for PIL petitioner Vishwaprasad Alva, for some time and later deferred it for consideration after two weeks. During the hearing, Justice Bagchi highlighted the practical challenges of issuing prior notice in search and seizure cases, particular
Finance Minister Nirmala Sitharaman on Sunday said the Income Tax Act, 2025 will be implemented from April 1 and rules and tax returns forms will be notified shortly. Beginning April 1, the Income Tax Act, 2025, will come into force replacing the six-decade-old tax law and the changes made in tax laws in 2026-27 Budget will be incorporated in the new legislation. In her Budget speech in the Lok Sabha on Sunday, she said, "This (direct tax code) was completed in record time and the Income Tax Act 2025 will come into effect from first April 2026. The simplified income tax rules and forms will be notified shortly, giving adequate time to taxpayers to acquaint themselves with its requirements." The forms have been redesigned, such that ordinary citizens can comply without difficulty, she added. The 2025 I-T law is revenue neutral with no change in tax rates. It has only made direct tax laws simple to understand, removed ambiguities, thereby reducing scope for litigations. It reduces te
Beginning April 1, the Income Tax Act, 2025, will come into force replacing the six-decade old tax law and the changes made in tax laws in 2026-27 Budget will be incorporated in the new legislation. The 2025 I-T law is revenue neutral with no change in tax rates. It has only made direct tax laws simple to understand, removed ambiguities thus reducing scope for litigations. It reduces text volume and sections by about 50 per cent vis-a-vis the 1961 income tax act. The new law simplifies the tax timeline by doing away with the distinction between the assessment year and the previous year, replacing it with a single 'tax year' framework. It also allows taxpayers to claim TDS refund even when ITRs are filed after deadlines, without any penal charges. Any changes with regard to taxation of individuals, corporates, HUFs and others, which are announced in the Budget for 2026-27 on February 1 will be incorporated in the new I-T Act, 2025. The rules to implement the new Income Tax law are .
The new Income Tax Bill prescribes the existing process for tax authorities to gain access to the digital space or a computer device only during search and survey operations, and it is not aimed to breach the online privacy of common taxpayers even if their case lands into scrutiny, a top I-T department official said Monday. The powers for such a coercive action "already existed" in the 1961 Act, and these have only been reiterated in the Income Tax Bill of 2025, he said. The official rejected claims made in some reports and opinion pieces that the tax authorities have been granted "additional" powers to breach the passwords of electronic records, including email, social media handles and Cloud storage space of the taxpayers. "Such reports are nothing but fear mongering. The tax department is not into snooping of social media accounts or online activities of a taxpayer. "These powers are only to be executed during the course of a search or survey operation, and that too when the ..