India, Jan. 27 -- The Indian tax system undergoes a significant shift starting April 1, 2026. This date marks the official rollout of the Income Tax Act 2025, a new law that replaces the 1961 Act. The government aims to reduce legal disputes and simplify the filing process for millions of taxpayers. Alongside this legislative change, the revised tax slabs and rebate rules from the previous budget now reach their full effective scale.

Under the new regime, the basic exemption limit stands at Rs 4 lakh. However, the use of tax rebates means that many individuals will pay no tax at all. A resident individual earning up to Rs 12 lakh annually qualifies for a rebate of up to Rs 60,000 under Section 87A. This rebate effectively brings their ta...