Exclusive | New Income Tax Act Cleans Up 6 Decades Of Complexity, Focuses On Simplicity: CBDT Member R N Parbat

By Saurabh Shukla

New Delhi: The new Income Tax Act will come into force from April 1, 2026. The Central Board of Direct Taxes is already preparing for its rollout, making sure that all systems are ready well in advance so that taxpayers experience a smooth and hassle-free transition. New Income Tax Act, replacing the six-decade-old legislation from 1961. Written in simple, clear language, the new law promises to make tax filing easier for ordinary citizens, cut through legal jargon, and reduce disputes by aligning with today’s digital economy.

In an exclusive conversation with ETV Bharat, Member (Legislation), Central Board of Direct Taxes (CBDT), R N Parbat talked about it at length.

He said that with over 4,000 amendments cluttering the old law, the fresh Act not only cleans up outdated provisions but also brings scattered rules together in one place. Starting next financial year, the new system will take effect, with the government planning FAQs, videos, and guidance notes to raise public awareness.

ETB: Tax laws are usually seen as very complicated. With this new Income Tax Act, how will filing taxes get easier for common people?
R N Parbat: The new Act is written in easy and simple language, steering clear of complicated legal terms. It's meant to be easy for regular folks to understand. Because it's so straightforward, taxpayers can quickly grasp the rules about how and why they're paying their taxes.

ETB: We’ve been using the old tax law since 1961. Why was it important to bring in a completely new law now?
R N Parbat: People who work in the system have been talking about this for a while now. Since 1961, this law has seen over 4,000 amendments. The original Act was written in old, complex language. Even the Prime Minister has said multiple times, including in his recent Red Fort speech, that laws should be in simple language and outdated ones should be scrapped. Following this, the Finance Minister, while presenting the Finance Bill, announced that the language would be simplified. As part of this, old provisions that had piled up over the years were removed. Also, rules related to the same issue, which were scattered in different places, were brought together. After this process, it’s much easier for regular people to understand the law.

ETB: These days almost every payment or transaction leaves a digital footprint. How will the new law use this to make compliance simpler and reduce disputes?
R N Parbat: The new Act is essentially a simplified version of the old one. Alongside this, work has started to make the Act more effective through system improvements. It’s set to be implemented more efficiently from April 1, 2026.

ETB: To raise awareness among people, what measures will the department and government take?
R N Parbat: We will release FAQs, put out some videos, and also issue guidance notes to help inform the general public about it.

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