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India: FAQs on transition to Income-tax Act 2025

Income-tax-Act 2025 scheduled to become effective April 1, 2026

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march 23, 2026

The Central Board of Direct Taxes (CBDT) released frequently asked questions (FAQs) regarding the transition from Income-tax Act, 1961 to Income-tax Act, 2025, which is scheduled to become effective April 1, 2026.

The FAQs are organized into 10 critical thematic areas:

  • General philosophy underlying the transition
  • Tax payments, collection, and refunds
  • Tax returns
  • Statutory forms and procedural requirements
  • Reassessment proceedings
  • Withholding tax (or “tax deducted at source” (TDS)) compliances
  • Appeals, revision, and alternative dispute resolution mechanisms
  • Set-off and carry forward of losses and deductions
  • Nonresident-related provisions
  • Other miscellaneous transitional issues

Read a March 2026 report prepared by the KPMG member firm in India

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