64 year old income tax law will be retired, the mathematics of your earnings and savings will change from April 1; Know 4 big changes: – ..

New Delhi. There is a very important news for crores of taxpayers of the country. The Central Government has made full preparations to bid farewell to the 64 year old ‘Income Tax Act 1961’. A new, modern and simple income tax law is going to be implemented in the country from April 1, 2026. The government claims that this change will not only reduce the complexity of the rules, but will also make the process of paying taxes transparent and easy. As soon as this new law comes into force, many rules related to your salary, investment and tax refund will completely change.

The hassle of Previous and Assessment Year is over, now there will be only ‘Tax Year’

Till now, the biggest confusion for common taxpayers was in reconciling the ‘Previous Year’ (year of income) and ‘Assessment Year’ (year of tax assessment). This confusion is being rooted out in the new law. Only one from 1st April 2026 ‘Tax Year’ will be. That means whatever you earn in the period from 1st April to 31st March, the tax process for the same will also be considered complete. This will reduce paperwork and filing returns will become much easier.

Strict rules on digital privacy: ‘Rein’ on investigation of social media

For some time, there was a fear that tax officials could check someone’s WhatsApp or Instagram account at any time. The position on this has been clarified in the new law. The power of digital access will no longer be unlimited. Tax authorities will be able to examine digital data only in cases of serious tax evasion or fraud. For this, proper search warrant and approval of higher officials will be mandatory. Honest taxpayers no longer need to fear about their digital privacy.

Big relief to those filing ITR late, now TDS refund will not sink

A big relief for the middle class and employed people is that now your TDS refund will not get stuck even if you file belated return. Till now it was difficult to get refund after the deadline, but under the new rules you will be able to get your refund back by paying late fees.

Income less than ₹5 lakh: ₹1,000 late fee.

Income more than ₹5 lakh: ₹5,000 late fee.

This change will ensure that taxpayers’ hard-earned money does not remain stuck in the government treasury.

Sovereign Gold Bond (SGB) will be taxed, investors will have to change their strategy

There may be a big setback on the investment front. The tax rules on Sovereign Gold Bond (SGB), which was considered tax-free till now, are changing. If you have bought SGB through the stock exchange and you sell it, then the profit made on Tax at the rate of 12.5% Will have to give. However, investors who hold the bonds till maturity (8 years) still have the possibility of getting relief as before.