Finance Minister Nirmala Sitharaman announced that the new Income Tax Act will come into effect from April 1, 2026. She said the simplified new tax rules will be notified "shortly," allowing taxpayers enough time to understand them. She added, "The forms have been redesigned such that ordinary citizens can comply without difficulty." This update follows her ninth budget presentation for 2025-26, where she called for a review of the Income Tax Act of 1961. The goal is to make the law "concise, lucid, easy to read and understand." The review aims to reduce tax compliance costs and improve direct tax administration.