The Income Tax Act, 2025, which comes into effect on April 1, 2026, aims to simplify compliance and reduce litigation for taxpayers in India. According to Vivek Wadekar, principal chief commissioner of Income Tax in Pune, the new Act replaces the outdated Income Tax Act, 1961, which had seen over 4,000 amendments, making it complex and difficult to interpret. The number of sections has been significantly reduced from 819 to 536, and chapters have been cut down from 47 to 23. Additionally, the Income Tax Rules have been streamlined from 511 rules with 399 forms to 333 rules with 190 forms. To assist taxpayers, the department has launched 'Kar Saathi', a 24x7 AI-powered chatbot designed to provide instant answers to queries, alongside the 'Kar Setu' initiative, which offers over 2,000 FAQs and educational materials. Refund processing will now be automated through the Centralized Processing Centre in Bengaluru, minimizing manual intervention. Wadekar emphasized the importance of taxpayers keeping their contact information updated to avoid communication issues. A major event titled 'PRARAMBH 2026' will be held on May 15, 2026, to discuss the new Act and its implications.