Finance Minister Nirmala Sitharaman stated today that the Income Tax Act 2025 reduces errors, disputes, and compliance costs. Speaking at the PRARAMBH 2026, a nationwide campaign on the Income Tax Act, 2025, in New Delhi, the Minister emphasized that the new act is less ambiguous and provides a simpler framework for those who want to understand it. Ms. Sitharaman said that small business owners and professionals are the engine of the economy, and under the new act, the presumptive taxation scheme has been strengthened. She added that taxpayers are not just tax providers but also the face of the relationship between the government and the taxpayers.
The Finance Minister informed that every section of the act has been recast, words have been changed, and it involves explanations through tables and formulae. She added that 75 thousand person-hours were dedicated by the Income Tax officials to get the act done. Ms. Sitharaman said that 819 sections have come down to 536 sections, while 47 chapters have come down to 23 chapters. The new Income Tax Act 2025 will come into effect from April 1st.