{"id":7039,"date":"2026-03-25T17:41:54","date_gmt":"2026-03-25T12:11:54","guid":{"rendered":"https:\/\/www.akgvg.com\/blog\/?p=7039"},"modified":"2026-03-25T17:42:30","modified_gmt":"2026-03-25T12:12:30","slug":"understanding-the-shift-from-income-tax-act-1961-to-2025-cbdts-faqs-explained","status":"publish","type":"post","link":"https:\/\/www.akgvg.com\/blog\/understanding-the-shift-from-income-tax-act-1961-to-2025-cbdts-faqs-explained\/","title":{"rendered":"Understanding the Shift from Income-tax Act, 1961 to 2025: CBDT\u2019s FAQs Explained"},"content":{"rendered":"<p>The Central Board of Direct Taxes (CBDT) has gone beyond the call of duty to provide a seamless transition to the new taxation regime in India by providing extensive <strong><b>FAQs, a detailed guidance note and clarifications on new forms<\/b><\/strong>\u00a0under the Income-tax Rules, 2026. These resources are <strong><b>meant to assist<\/b><\/strong>\u00a0the taxpayers, professionals, and businesses to <strong><b>move seamlessly<\/b><\/strong>\u00a0through the Income-tax Act, 1961 to the Income-tax Act, 2025.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.akgvg.com\/blog\/understanding-the-shift-from-income-tax-act-1961-to-2025-cbdts-faqs-explained\/#A_Structured_Transition_with_Clarity\" >A Structured Transition with Clarity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.akgvg.com\/blog\/understanding-the-shift-from-income-tax-act-1961-to-2025-cbdts-faqs-explained\/#Continuity_of_Processes_and_Compliance\" >Continuity of Processes and Compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.akgvg.com\/blog\/understanding-the-shift-from-income-tax-act-1961-to-2025-cbdts-faqs-explained\/#Simplified_Compliance_and_New_Forms\" >Simplified Compliance and New Forms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.akgvg.com\/blog\/understanding-the-shift-from-income-tax-act-1961-to-2025-cbdts-faqs-explained\/#Dual_Compliance_During_Transition\" >Dual Compliance During Transition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.akgvg.com\/blog\/understanding-the-shift-from-income-tax-act-1961-to-2025-cbdts-faqs-explained\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"A_Structured_Transition_with_Clarity\"><\/span><strong><b>A Structured Transition with Clarity<\/b><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The newly released FAQ compendium emphasizes that the transition is not merely a legal replacement but a carefully managed process. The primary objective of introducing the Income-tax Act, 2025 is to create a <strong><b>simpler, more transparent, and modern tax system<\/b><\/strong>. Importantly, the CBDT clarifies that the new law does not introduce additional taxes or increase the tax burden; instead, it focuses on improving readability, reducing disputes, and enhancing compliance.<\/p>\n<p>One of the key highlights from the FAQs is that while the 1961 Act will be repealed from 1st April 2026, <strong><b>existing rights, liabilities, and proceedings will continue under the old law<\/b><\/strong>. This ensures that taxpayers are not adversely affected during the transition phase.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Continuity_of_Processes_and_Compliance\"><\/span><strong><b>Continuity of Processes and Compliance<\/b><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The CBDT has taken continuity in a number of areas to ensure <strong><b>nothing is interrupted.<\/b><\/strong>\u00a0The systems that are already in place like PAN, TAN, faceless assessments, and digital compliance frameworks will still exist under the new Act.<\/p>\n<p>The FAQs also explain that the <strong><b>pending<\/b><\/strong>\u00a0proceedings, appeals and reassessments involving the previous years will <strong><b>still be carried on under the provisions of the 1961 Act<\/b><\/strong>. As an <strong><b>example<\/b><\/strong>, an assessment that was initiated prior to April 2026 will be determined under the old law and will be consistent and legally certain.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Simplified_Compliance_and_New_Forms\"><\/span><strong><b>Simplified Compliance and New Forms<\/b><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Together with the FAQs, the CBDT has also released a guidance note regarding new forms, to make the <strong><b>compliance<\/b><\/strong>\u00a0<strong><b>straightforward and user-friendly<\/b><\/strong>. It has made the <strong><b>system more efficient<\/b><\/strong>\u00a0and less cumbersome since the number of rules and forms have been greatly minimized.<\/p>\n<p>For <strong><b>example<\/b><\/strong>, several PAN and TAN applications forms have been redesigned into leaner and easier to use. Also, such forms as Form 15G and 15H will be unified into one form (Form 121) in order to decrease the confusion and duplication. These modifications indicate a high demand toward digitization, automation, and compliance ease, which are beneficial to both the taxpayers and administrators.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Dual_Compliance_During_Transition\"><\/span><strong><b>Dual Compliance During Transition<\/b><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The FAQs point out that the <strong><b>old and new tax regimes would run concurrently<\/b><\/strong>\u00a0during the transition process. Under the old Act (AY 2026-27), taxpayers will end the year with FY 2025-26 returns and they will also have to meet their advance tax and other requirements under the new Act at the end of FY 2026-27.<\/p>\n<p>This two-fold structure will provide continuity with a gradual transition of taxpayers to the new regime.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong><b>Conclusion<\/b><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The FAQs and the <strong><b>guidance notes<\/b><\/strong>\u00a0released by the CBDT are important in the demystification of the transition to the Income-tax Act, 2025. These resources will <strong><b>offer a solid base on which the effective transition<\/b><\/strong>\u00a0to the modern taxation system in India will not only be smoother but also more efficient by considering the practical issues and clarifying where the law stands or by providing <strong><b>simple methods of compliance to the new legal regulations<\/b><\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Central Board of Direct Taxes (CBDT) has gone beyond the call of duty to provide a seamless transition to the new taxation regime in India by providing extensive FAQs, a detailed guidance note and clarifications on new forms\u00a0under the Income-tax Rules, 2026. These resources are meant to assist\u00a0the taxpayers, professionals, and businesses to move&#8230;<\/p>\n","protected":false},"author":1,"featured_media":7041,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[397],"tags":[2099,2104,2098,2088,2105,2103,2102,2100,2106,2101],"class_list":["post-7039","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-taxation-regulory-services","tag-cbdt-faqs-2025","tag-cbdt-guidelines-2025","tag-income-tax-act-1961-vs-2025","tag-income-tax-act-2025","tag-indian-taxation-update","tag-it-act-transition","tag-new-income-tax-rules-2026","tag-tax-law-changes-india","tag-tax-reforms-india","tag-tax-year-concept-india"],"_links":{"self":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/7039","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/comments?post=7039"}],"version-history":[{"count":1,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/7039\/revisions"}],"predecessor-version":[{"id":7040,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/7039\/revisions\/7040"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/media\/7041"}],"wp:attachment":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/media?parent=7039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/categories?post=7039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/tags?post=7039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}