Income Tax Bill, 2025 and Taxation Laws (Amendment) Bill, 2025 have received President Droupadi Murmu's assent. The new Income Tax Act will replace 1961 Act and will come into effect from April 1, 2026. It will reduce number of Sections from 819 in 1961 Act to 536. The Taxation Laws (Amendment) Act proposes tax exemptions for Unified Pension Scheme payouts.