Transition to the Income-tax Act, 2025 effective from 1 April 2026

From 1 April 2026, companies will transition from the Income-tax Act, 1961 to the Income-tax Act, 2025, a reform that restructures the entire corporate tax compliance framework. This transition requires organisations to realign governance structures, update ERP and tax computation systems, and ensure correct mapping of provisions under the new law. Companies must also review withholding tax processes, transfer pricing documentation, litigation positions, and the carry-forward of tax attributes. Equally important is reconciling tax data with digital reporting systems and training internal teams on the new framework. A structured transition plan ensures compliance continuity, reduces tax risks, and supports a smooth shift to the new corporate tax regime.