New Income Tax law promises simpler filing, faster refunds and fewer disputes

The new Income Tax Act, which came into force on April 1, 2026, aims to simplify compliance, reduce litigation and build a more transparent, technology-driven ecosystem for taxpayers, PTI reported, citing a senior tax official.

Speaking in Pune on Tuesday, Principal Chief Commissioner of Income Tax (Pr-CCIT) Vivek Wadekar said the earlier Income Tax Act of 1961 had become “bulky” after more than 4,000 amendments, often leading to disputes because of varying interpretations of provisions.

Focus on simpler compliance and digital services

The official said the department is focusing on promoting voluntary compliance and reducing friction between taxpayers and authorities through digital initiatives and outreach programmes.

• As part of this effort, the Income Tax Department has launched ‘Kar Saathi’, a 24x7 AI-powered chatbot to answer taxpayer queries instantly.

• Another initiative, ‘Kar Setu’, offers more than 2,000 FAQs and educational brochures explaining 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.

Faster refunds and fewer communication gaps

He also noted that complaints regarding “high-pitch” assessments often arise because of communication gaps, including outdated email addresses or incorrect contact details provided by taxpayers.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.

Outreach campaign under PRARAMBH 2026

The Income Tax Department will organise a taxpayer outreach campaign under “PRARAMBH 2026” (Policy Reform and Responsible Action for Mission Viksit Bharat) across 23 districts in the Pune region to familiarise taxpayers with the new law.