How will transitioning to new IT Act 2025 help small taxpayers?

The Income Tax Act, 2025, will replace Income Tax Act, 1961, from April 1. The transition aims to help small taxpayers by providing a streamlined, simplified and modern tax code with reduced compliance burden and consolidated provisions, CBDT said. The new Act uses simpler language, reduces excessive cross-referencing and improves digital integration, lowering dependency on complex interpretation.