Module: General Practice
Q2: The Union Budget 2026-27 announced the implementation of a comprehensive new legislation to replace the existing Income Tax Act, 1961. On which date will the "New Income Tax Act" formally come into effect?
✅ Correct Answer: A
The New Income Tax Act is scheduled to come into effect from April 1, 2026.
The Finance Minister announced that the new Act is designed to simplify tax compliance, reduce litigation, and modernize the direct tax code.
This replaces the Income Tax Act, 1961, which has governed Indian taxation for over six decades.
The Union Budget 2026-27 aims to make the tax structure more "assessee-friendly" with simplified language.
The Finance Minister announced that the new Act is designed to simplify tax compliance, reduce litigation, and modernize the direct tax code.
This replaces the Income Tax Act, 1961, which has governed Indian taxation for over six decades.
The Union Budget 2026-27 aims to make the tax structure more "assessee-friendly" with simplified language.