India’s new Income Tax Act, 2025 is set to come into effect from 1 April 2026, making this the right time for businesses, finance teams, and advisors to review their readiness.
Key points to note
- The new Income Tax Act, 2025 is slated to come into effect from 1 April 2026.
- Simplified income tax rules and forms are expected to follow, with an emphasis on easier understanding and compliance.
- A joint committee of MCA and CBDT has been proposed for incorporating ICDS requirements in Ind AS.
- Separate accounting requirements based on ICDS are proposed to be done away with from tax year 2027-28.
- Businesses should review internal tax processes, reporting workflows, advisor coordination, and documentation readiness before the transition.
What businesses should do now
- Review current tax reporting and documentation workflows.
- Prepare finance teams for changes in forms and internal checklists.
- Revisit advisory support for transition-year planning.
- Watch for notified rules and form updates.
If your business wants a readiness review before the 1 April 2026 transition, TCC can help map the likely impact on your compliance workflow.
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