Income Tax Act 2025: Understanding Upcoming Changes to Tax Slabs and Rates Starting from April 1

As the financial year is ending on March 31st, we need to comprehend the changes which will come into effect on April 1 to tax rates and slabs.

The Union Budget 2026 made a number of changes to the Income Tax Act in order to make it easier for taxpayers to comply and reduce bureaucratic obstacles. The extension of the deadline for submitting revised income tax returns and the decrease in TCS rates are two of the significant modifications.

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The government has also introduced steps like a one-time foreign asset disclosure window and prolonged the deadlines for submitting ITR-3 and ITR-4 for taxpayers who are not subject to audit. The deadline for submitting a modified return was changed from December 31 to March 31 of the applicable fiscal year. But, after December 31, taxpayers will have to pay an extra charge to submit a modified return.

The next fiscal year will begin on April 1 with the implementation of the new Income Tax Act. Tax specialists say that taxpayers may not see a change in their tax obligations at first since the legislation primarily reorganizes and streamlines the current laws.

The current tax rates and income tax brackets for individuals will not be affected by the new Income Tax Act. The current tax rates under both the old and the new tax regimes will remain in effect even after the new law takes effect.

With the new tax system remaining the default option, the tax liability for FY 2025–26 will remain the same as the current slab structures.