01 Apr 2026Income Tax
Income-tax Act, 2025 comes into force
The new Act replaces the six-decade-old Income-tax Act, 1961 and applies from tax year 2026-27 onwards, introducing a single "Tax Year" in place of the previous-year/assessment-year system. The Income-tax Rules, 2026 were notified on 20 March 2026.
Source · CBDT / Income Tax Department
Apr 2026Income Tax
MAT to become a final tax at 14%
From FY 2026-27, Minimum Alternate Tax is proposed to be made a final tax, with the rate reduced to 14% from 15%. MAT credit accumulated up to 31 March 2026 continues to be available for set-off.
Source · Budget 2026 / Finance Act, 2026
Apr 2026Income Tax
Share buy-backs taxed as capital gains; STT raised
Amounts received on buy-back of shares are now taxed as capital gains in the shareholder's hands. Securities Transaction Tax rates have also been increased for F&O, raising transaction costs for derivatives traders.
Source · Finance Act, 2026