The Income-tax Act, 1961

The Income Tax Act, 1961 is the charging statute of income tax in India. It provides for the levy, administration, collection, and recovery of income tax. The Government of India brought a draft statute called the Direct Taxes Code intended to replace the Income Tax Act, 1961 and the Wealth Tax Act, 1957.

New Income Tax Bill 2025 was presented by the government in the Lok Sabha (lower house of Indian parliament) on 13.02.2025, If the bill is approved and passed then it will become an act of law and will come into force with effect from 01.04.2026.