RAS question
The Income Tax Act 2025 came into force on which date, replacing Income Tax Act 1961?
Correct answer: (A) April 1, 2026.
The Income-tax Act, 2025 came into force on 1 April 2026, replacing the Income-tax Act, 1961.
Explanation
The PIB release from the Ministry of Finance states that the Income-tax Act, 2025 came into force from 1 April 2026. This is why option A is the only correct date. The Act replaced the six-decade-old Income-tax Act, 1961 and was described as a reform of India's direct tax framework, meant to simplify and modernise income-tax law through clearer language, a streamlined structure and reader-friendly presentation, without changing the underlying tax policy. The Act contains 536 sections. PIB further records that the Income-tax Rules, 2026 and simplified forms had been notified to operationalise the new Act, which explains why the commencement date matters administratively, not just as a bare chronology fact.
Why the other options are wrong
- (B) January 1, 2026 is wrong because the PIB release explicitly says the Income-tax Act, 2025 came into force from 1 April 2026, not from the beginning of the calendar year.
- (C) April 1, 2025 is wrong because the Press Information Bureau, Ministry of Finance places commencement one year later, on 1 April 2026, after the Act became law in 2025.
- (D) February 1, 2026 is wrong because the PIB release identifies 1 April 2026 as the operative commencement date, while the options give no support for February as the date of enforcement.
Concept
This tests legislative commencement and major fiscal-law reform under Indian governance. RAS often repeats such questions because candidates must track when a law is enacted, when it receives assent and when it actually comes into force.