FAQs on Interplay and Transition from the Income-tax Act, 1961
FAQs on Interplay and Transition from the Income-tax Act, 1961
The Income-tax Act, 2025 will replace the Income-tax Act, 1961 with effect from 1 April 2026, representing an important step in India’s ongoing efforts to modernise its tax framework and make it simpler, more transparent, and easier for taxpayers to comply with.
A transition of this scale naturally raises several interpretational and practical issues. These may relate to matters such as the treatment of pending proceedings, continuation of compliance requirements, handling of existing claims, and determination of rights and obligations that arose under the earlier law. In view of these concerns, this compendium of Frequently Asked Questions (FAQs) has been developed to provide structured and practical guidance on the interaction and transitional provisions between the two legislative frameworks.
For ease of reference, the FAQs have been organised into ten broad thematic areas. These include the overall principles guiding the transition, tax payments, filing of income-tax returns, statutory forms and procedural compliances, reassessment matters, TDS obligations, dispute resolution mechanisms, carry forward and set-off of losses, provisions relating to non-residents, and other miscellaneous transitional aspects. Together, these sections aim to address both the conceptual framework of the new regime as well as the practical issues that taxpayers, professionals, and administrators may encounter during the transition period.
Every effort has been made to present the information in a clear, systematic, and user-friendly manner, with the objective of facilitating a smooth shift from the earlier law to the new legislative framework. This compendium is intended to provide clarity and promote consistent understanding and application among taxpayers, tax professionals, and tax authorities.
The transition to a new tax statute is a collective and evolving process involving all stakeholders, including taxpayers, professionals, and tax administrators. It is expected that this resource will serve as a useful reference, helping reduce uncertainty, encourage informed compliance, and support an orderly and effective migration to the Income-tax Act, 2025.
Also Read: FAQs and Guidance notes on Forms under Income-tax Rules, 2026
Read More: Union Budget 2026 – CA Cult
