Income Tax Act

Central tax collections rose 6.5% in April-August, trailing the 9% FY27 Budget target, as major tax receipts declined sharply in August.

The Supreme Court declines to interfere with a Delhi High Court judgment reading down a CBDT circular that prescribed maximum marginal rate taxation for Category-III AIFs

The Supreme Court said assessment proceedings covered by the dispute will not proceed until final disposal of the Centre's plea, with the matter listed for hearing on December 3, 2026

Government challenges Punjab and Haryana High Court ruling that invalidated the retrospective provision governing tax reassessment powers of jurisdictional officers in India

The Punjab and Haryana High Court has struck down Section 147A of the Income Tax Act as unconstitutional, affecting rules on who can issue reassessment notices under the faceless tax system

The department is working with taxpayers and other stakeholders to reduce ambiguity and improve consistency as cross-border transactions and business structures become more complex

Allahabad High Court said tax authorities cannot make an invalid notice valid by later adding a legal heir, and must instead issue fresh notice directly to legal representative within prescribed time

The tax department will upload foreign financial information received under international information-sharing agreements into taxpayers' AIS and Form 26AS to improve transparency and compliance

From cash receipts to property deals and bank deposits, know restrictions that can trigger reporting or penalties

Revamp raises threshold, but experts warn of interpretational hurdles

Department moves to automated refunds as the 2025 Act prioritises simplified compliance and reduced litigation

A growing mismatch between insolvency and tax laws is raising uncertainty for companies, with tax authorities denying loss carry-forward benefits despite approved resolution plans

The new income tax law and other budgetary provisions, including higher Securities Transaction Tax (STT) on F&O trade and lower TCS on overseas tour packages and LRS remittances for medical and education purposes, will come into effect from April 1. Also, the Budget announcement of a 20-year tax holiday up to 2047 to any foreign company that procures data centre services in India, and new safe harbour provisions with a higher threshold for software companies will come into effect from Wednesday, with the beginning of the 2026-27 fiscal. The Income-tax Act, 2025, will replace the Income-tax Act, 1961, with effect from April 1, 2026. The new Act aims to present the same tax policy in a more logical, accessible, and reader-friendly format. The Income Tax department has said that its e-filing portal will facilitate compliance under both the old and new Income Tax Acts in the transition period, and all assessments, appeals, and other proceedings relating to earlier years will continue .

New rules expand HRA benefits to more cities, clarify EV taxation, tighten reporting norms and streamline transfer pricing and foreign tax credit processes

Finance Minister says expanded presumptive taxation and simplified provisions under the new law will reduce compliance burden and litigation for small businesses and professionals

Central Board of Direct Taxes on Friday notified the rules for Income-tax Act, 2025 which provided enhanced tax benefit for HRA to salary earner but makes disclosure of landlord-tenant relationship mandatory. The Income-tax Rules, 2026 will operationalise the simplified direct tax legislation that was approved by Parliament last year and will come into effect from April 1. "These rules may be called the Income-tax Rules, 2026. They shall come into force on the April 1, 2026," a gazette notification said. Parliament on August 12, 2025 passed a new Income Tax Bill to replace the six-decade-old Income Tax Act, 1961. It does not impose any new tax rate and only simplified the language, which was required for understanding the complex Income Tax laws. The Act has removed redundant provisions and archaic language and reduces the number of Sections from 819 in the Income Tax Act of 1961 to 536 and the number of chapters from 47 to 23. The number of words had been reduced from 5.12 lakh t

CBDT chief Ravi Agrawal said the new Income Tax Act, effective April 2026, will create a rule-based, AI-enabled tax ecosystem aimed at reducing disputes, improving certainty and enhancing compliance

The tax department has proposed a major redesign of 30 high-volume income-tax forms to reduce duplication, simplify compliance and support a data-driven regime under the new law

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

Draft rules and forms under the Income Tax Act, 2025 are set to be released this week, ahead of a phased transition from the 1961 law starting April 1