New Tax Act 2025: Which Law Covers Your ITR?

India's new Income Tax Act takes effect from April 2026. But old cases, TDS certificates, and pending assessments still follow the 1961 law. CBDT's FAQs clarify which law applies to your situation — and you need to know before filing.

Here's what happened: The new Income Tax Act 2025 replaces the 1961 Act from April 1, 2026, but pending tax cases, assessments, and appeals filed before that date continue under the old law.. CBDT clarified via FAQs that TDS certificate applications and deductions already processed under the 1961 Act will remain valid — you don't need to reapply under the new Act.. Transition rules mean your financial year 2025-26 income (filed in 2026-27) will largely follow the new Act, while any dispute or proceeding from earlier years stays under the old rules..

What you should do: Check if you have any pending income tax notices, appeals, or assessments — these will continue under the 1961 Act, so don't mix up the two sets of rules when responding.. If your employer or bank issued a TDS certificate before April 2026, treat it as valid — you do not need to request a fresh certificate under the new Act.. From April 2026, review the new Act's section numbering before filing your ITR or responding to any tax notice — section numbers have changed significantly from the 1961 Act..

The new Income Tax Act 2025 is largely a rewrite in simpler language — not a complete overhaul of rates or deductions. Most salaried taxpayers will see little change in their actual tax liability for FY 2026-27.