Pune: The newly implemented Income Tax Act, 2025 has been designed to simplify compliance, reduce litigation and create a transparent, technology-driven tax ecosystem that is easier for ordinary citizens to understand, said Vivek Wadekar, principal chief commissioner, Income Tax (Pr-CCIT), Pune, on Tuesday.
Addressing a press conference at Aaykar Bhavan, Wadekar said the Act, which came into force on April 1, 2026, replaces several complex provisions of the Income Tax Act, 1961, a law that had undergone more than 4,000 amendments over the last six decades.
“The earlier law had become extremely bulky and difficult to interpret due to repeated amendments over the years. The latest Act uses much simpler language and a more organised structure so that taxpayers and tax authorities remain on the same page,” Wadekar said.
According to officials, the number of sections has been brought down from 819 to 536, while chapters have been reduced from 47 to 23. Similarly, the Income Tax Rules have been streamlined from 511 rules with 399 forms to 333 rules with 190 forms.
As part of the taxpayer assistance measures, the department has launched “Kar Saathi”, a 24x7 AI-powered chatbot to address queries instantly. In addition, the “Kar Setu” initiative offers more than 2,000 FAQs and educational brochures to help taxpayers understand provisions of the new law in simple language. To improve outreach in Maharashtra, educational booklets related to exemptions and tax deducted at source (TDS) have also been printed in Marathi, the official said.
{{/usCountry}}As part of the taxpayer assistance measures, the department has launched “Kar Saathi”, a 24x7 AI-powered chatbot to address queries instantly. In addition, the “Kar Setu” initiative offers more than 2,000 FAQs and educational brochures to help taxpayers understand provisions of the new law in simple language. To improve outreach in Maharashtra, educational booklets related to exemptions and tax deducted at source (TDS) have also been printed in Marathi, the official said.
{{/usCountry}}Highlighting reforms in processing and assessments, Wadekar said refunds are now being processed automatically through the Centralized Processing Centre (CPC) in Bengaluru without manual intervention.
He said complaints regarding “high-pitch” assessments often arise due to communication gaps, including outdated email addresses or incorrect contact details provided by taxpayers.
“Taxpayers should ensure that their contact details are updated to avoid discrepancies and ensure smooth communication with the department,” he said.
The senior official said that the department will organise a mega event under “PRARAMBH 2026” (Policy Reform and Responsible Action for Mission Viksit Bharat) focusing on the Income Tax Act, 2025.
A flagship mega event has been scheduled at the Cosmos Bank Auditorium, ICS Colony, Ganeshkhind, at 10.30 am on May 15.