New Delhi, Feb. 12 -- The Income Tax Bill, 2025, which is expected to be tabled in Parliament soon, will come into effect from April 1, 2026, replacing the Income Tax Act, 1961, Business Standard.

According to a draft of the bill shared with Members of Parliament, it introduces a new definition of a 'tax year' as the 12-month financial year beginning in April.

Additionally, explanations and provisos have been eliminated for improved clarity and interpretation of tax laws.

The bill also simplifies salary deductions by consolidating standard deduction, gratuity, and leave encashment provisions into a single section, instead of dispersing them across multiple sections and rules.

Furthermore, the old tax regime will remain in place, allow...