New Delhi, Aug. 22 -- The government on Friday notified the Income-tax Act, 2025, and said it will replace the over six-decade-old direct tax law at the start of the new financial year on 1 April. The bill to replace the Income-tax Act, 1961, got President Droupadi Murmu's assent on Thursday.

The income-tax department said in a social media post that the new law is streamlined, integrated and seeks to minimise litigation. "A landmark step towards ease of compliance and ease of doing business," it said.

The new law will significantly reduce tax litigation, Baijayant Panda, chairperson of the Lok Sabha select committee that had reviewed the bill had told Mint in an interview on 22 July. A new India deserves a simple, easy-to-comprehend, e...