Why is it in the news?
Came into force from 1 April 2026
Category: Economy
Important Points:
● Replaces Income-tax Act, 1961
● Objective: simplify & modernize tax system
● Introduces single “Tax Year” (merging FY & AY)
● Form 130 replaces Form 16
● Includes virtual digital assets in taxation
● Allows access to virtual digital spaces
● Simplified tax forms & compliance
● Notified by CBDT via Rules 2026
● Aims to reduce tax burden
● Supports Viksit Bharat vision