CBDT to Finalise Rules for New Income Tax Act, 2025 by Year-End, Digital Data SOP Soon

The CBDT is set to finalize the rules for the new Income Tax Act, 2025, by the end of this year. The new law, which received presidential assent on August 21, is aimed at simplifying tax administration and reducing litigation. A senior tax official stated that the department is working on user-friendly forms and a digital data SOP (Standard Operating Procedure) to ensure a smooth transition. The new rules will be ready by December 2025, well in advance of the law's effective date of April 1, 2026. This proactive approach by the tax authority is intended to provide clarity and certainty for taxpayers.