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29 August 2026 · National and international edition

The new Income-tax law — simplification, not new taxation

  • Economy & Sci-Tech
  • GS-III, GS-II
  • Direct Tax
  • Income Tax Act
  • Tax Year
  • Ease of Doing Business
  • Governance

Why it is in the news

The rewritten direct tax statute replaces the Income Tax Act, 1961 with a shorter, reorganised law. There are no new taxes and no rate changes; the reform is about readability.

The exam angle

The single term “tax year” replacing both previous year and assessment year is the likeliest Prelims hook. For Mains, the honest critique: simplifying a statute does not simplify administration.

Written for APPSC Group 1, TGPSC Group 1 and UPSC Civil Services. More from 29 August 2026 or all current affairs.

The new Income-tax law — simplification, not new taxation · PrepShark