The new Income Tax Act 2025, which has come into force from April 1, 2026, has remodelled the tax system to a modern and more taxpayer-friendly form, said Chief Commissioner of Income Tax, Madurai, V.S. Sreelekha.

She was addressing an outreach programme on the new Income Tax Act, 2025 here on Wednesday.

She said that the old Income Tax Act, 1961 had become complex and unwieldy because of the numerous amendments introduced to it over the years. With inclusion of many explanations and provisos, its complexity gave room to ambiguity and litigations, he added.

The most significant feature of the new Act is its focus on simplification and clarity. “Redundant and obsolete clauses have been removed, complex sentences and archaic language have been revised for simplicity,” she added.

Besides, tables and schedules have been introduced to make the sections more intelligible. “The Act has been reorganised into a more logical and accessible structure, bringing greater simplicity and reducing confusion for taxpayers, businesses and professionals alike,” Ms. Sreelekha said.

The new Act also does not envisages any policy changes or change in tax rates.

In order to help the tax professionals and assessees during the current transition period, new initiatives like Kar Setu -- a set of frequently asked questions -- interactive sessions with senior officers, updated infromational brochures and Kar Saathi -- a chatbot-- have been introduced.

Speaking on the occasion, Principal Commissioner of Income Tax, Madurai, T. Vasanthan, said that the number of Chapters and Sections in the new Act have been reduced and the overall word count of the legislation has been brought down significantly.

Alphanumeric sequencing in the old Act, which was cumbersome for both tax practitioners and tax administrators, has been rationalised and reorganised in the new Act, he added.

Additional Chief of Income Tax, R. Rajarajeswari and Joint Chief of Income Tax, S. Manoj Prakash, Deputy Chief of Income Tax, Santhasoruban and president of Chamber of Commerce and Industry, N. Jegatheesan, spoke.