The Institute of Chartered Accountants of India (ICAI) has released the updated second edition of its publication on the Income-tax Act, 2025, incorporating amendments made by the Finance Act, 2026. This updated publication, along with a companion volume on the Income-tax Rules, 2026, is aimed at facilitating a smooth transition to the new direct tax regime coming into force from 1st April, 2026.
The Income-tax Act, 2025 marks a significant milestone in India’s direct tax landscape, introducing a simplified, structured, and taxpayer-friendly legal framework. The notification of the Income-tax Rules, 2026 along with prescribed forms on 20th March, 2026 completes the foundational architecture of the new law, enabling its effective implementation.
The updated publication released by ICAI includes a comprehensive tabular mapping of sections of the Income-tax Act, 2025 vis-à-vis the Income-tax Act, 1961, which serves as a valuable reference tool for professionals and stakeholders. This mapping facilitates better understanding of the changes and assists in navigating the transition from the earlier law to the new regime with greater clarity and ease.
ICAI, through its Direct Taxes Committee (DTC) and International Taxation Committee, has played a proactive role in the development of the new legislation. The Committees have actively contributed to policy formulation by submitting detailed memoranda and suggestions on the Income-tax Bill, 2025, as well as on the draft Rules and Forms. Notably, more than 150 recommendations of ICAI have been incorporated into the final framework of the Income-tax Act, 2025 and Income-tax Rules, 2026.
The publication also highlights several key reforms introduced under the new law, including simplification of legal language, rationalisation of provisions, and taxpayer-friendly measures such as decriminalisation of certain offences, relief in cases of under-reporting, and reduction in tax rates on unexplained income. These reforms are expected to enhance ease of doing business and promote voluntary compliance.
As part of its knowledge dissemination initiatives, ICAI has been actively conducting webinars, outreach programmes and seminars across the country to create awareness and build professional competence on the new income-tax law. The release of this updated publication is another step towards equipping members and stakeholders with the necessary tools for effective interpretation and application of the provisions of the new Act.
ICAI has also announced the release of a separate publication on the Income-tax Rules, 2026, including tabular mapping of rules and forms vis-à-vis the Income-tax Rules, 1962. Both publications will be made available to members at a reasonable price, with a combined offer for those opting to purchase both volumes.
The Institute expressed confidence that the updated publications will serve as a valuable reference for professionals, taxpayers and other stakeholders, and will significantly contribute to the effective implementation of the new income-tax regime in the country.
The Booklet can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/04/ICAI-Income-Tax-Act-2025-Mapping.pdf
