India's tax reforms, effective April 2026, aim to cut litigation, simplify laws, and boost collections to Rs 24.21 lakh crore.

The Central Board of Direct Taxes (CBDT) has welcomed new Union Budget measures set to take effect April 1, 2026, including the integration of assessment and penalty proceedings to cut litigation by half, a 40% rise in appeal disposals, and the simplified Income Tax Act 2025, which cuts the law’s length by half and replaces jail terms with fines for certain offenses. Taxpayers will gain easier access to Forms 15G and 15H via a single depository, and TCS rates on overseas education and medical remittances have been rationalized. Nudge campaigns and an extended returns window led to 1.11 crore revised filings, generating over Rs 8,000 crore in additional revenue. With collections growing at 9.4%, the CBDT is confident of meeting the revised fiscal target of Rs 24.21 lakh crore.