Finance Minister Nirmala Sitharaman today said that the Income Tax Act 2025 lowers errors, disputes and compliance costs. Addressing the PRARAMBH 2026, a Nationwide Awareness Campaign on the Income Tax Act, 2025, in New Delhi, the Minister underlined that the new act is less ambiguous and gives a simpler framework for people who want to understand it. Ms Sitharaman said that small business owners and professionals are the engine of the economy, and under the new act, the presumptive taxation scheme has been strengthened.

The Finance Minister informed that every section of the act has been recast, words have been changed and it involves explanations through tables and formulae. She added that 75 thousand person-hours were dedicated by the Income Tax officials to get the act done. Ms Sitharaman said 819 sections have come down to 536 sections, while 47 chapters have come down to 23 chapters. The new Income Tax Act 2025 will come into effect from the 1st of April.