New I T Act will reduce disputes and simplify compliance: Sitharaman

Finance Minister Nirmala Sitharaman has said that the Income Tax Act 2025 lowers errors, disputes and compliance costs. Addressing the PRARAMBH 2026, a Nationwide Awareness Campaign on the Income Tax Act, 2025, in New Delhi on Friday, the Minister underlined that the new act is less ambiguous and gives a simpler framework for people who want to understand it. Ms Sitharaman said that small business owners and professionals are the engine of the economy, and under the new act, the presumptive taxation scheme has been strengthened. The Finance Minister informed that every section of the act has been recast, words have been changed and it involves explanations through tables and formulae. She added that 75 thousand person-hours were dedicated by the Income Tax officials to get the act done. Ms Sitharaman said 819 sections have come down to 536 sections, while 47 chapters have come down to 23 chapters. "The taxpayer is not your adversary. The taxpayer is your partner in nation building," she said. 

I want to convey a message to the Income Tax Department.

You're not just tax collectors. You're the face of the government's relationship with the taxpayer.

Since you're the face of the government's relationship with the taxpayer, this new law gives you a clearer and leaner… pic.twitter.com/G5jpdVUhZn

— Nirmala Sitharaman Office (@nsitharamanoffc) March 20, 2026

The government also highlighted the use of digital tools and MyGov engagement initiatives to connect with citizens, particularly youth and professionals, and promote awareness about the new tax framework. The new Income Tax Act 2025 will come into effect from the 1st of April.