When does the new income tax start?

The new income tax rules and the Income Tax Act 2025 will come into effect from April 1, 2026. This date marks the start of the new Tax Year 2026-27, which replaces the previous concept of Financial Year and Assessment Year with a unified 12-month period. Key changes effective from this date include:

• Implementation of revised tax slabs under the new regime.
• Increased basic exemption limit up to Rs 12 lakh for resident individuals.
• Enhanced standard deduction of Rs 75,000 for salaried taxpayers.
• Streamlined compliance procedures under the modern tax code.