The new Income Tax Act, 2025 has officially come into effect from April 1, 2026, replacing the decades-old 1961 law and introducing updated provisions for taxpayers and businesses.
Officials said the revised Act aims to simplify compliance, modernize exemptions, and strengthen measures against tax evasion, while ensuring greater transparency in financial reporting.
Alongside the new tax law, mandatory two-factor authentication has been introduced for all digital payments, covering UPI, credit cards, debit cards, and net banking transactions, to enhance security and reduce fraud risks.
Revised rules for applying for a PAN card have also come into force, requiring stricter documentation and verification to prevent duplication and misuse of identity records.
Authorities noted that these reforms mark a significant step toward strengthening India’s financial ecosystem, improving taxpayer convenience, and safeguarding digital transactions.
