CHAPTER I - PRELIMINARY | ACT 30 OF 2025

When Did the Income-tax Act 2025 Come Into Force? Section 1 Explained

Section 1 of the Income-tax Act, 2025 establishes the Act's official name, its territorial extent and its commencement date. The general commencement date is 1 April 2026, subject to provisions made elsewhere in the Act.

Statutory position: Section 1, Income-tax Act, 2025 (Act 30 of 2025), read with the supplied consolidated text as amended by the Finance Act, 2026. The Act received Presidential assent on 21 August 2025; assent and commencement are different legal events.

Section 1: Short title, extent and commencement

1. (1) This Act may be called the Income-tax Act, 2025.

(2) It extends to the whole of India.

(3) Save as otherwise provided in this Act, it shall come into force on the 1st April, 2026.

These three subsections identify the enactment and set the framework for when and where its provisions operate. Section 1 does not itself prescribe income-tax rates, exemptions or assessment procedures.

Legal meaning of Section 1

Section 1(1): What is the short title of the new income-tax law?

The statutory short title is Income-tax Act, 2025. The reference Act 30 of 2025 identifies the enactment. The year in its title refers to the year of enactment, not necessarily the date when its substantive provisions begin operating.

Section 1(2): Where does the Act apply?

The Act extends to the whole of India. Territorial extent is not the same as the scope of income chargeable to tax. Questions concerning the taxation of residents, non-residents or foreign-source income must be decided under the applicable charging, scope and residence provisions, rather than Section 1(2) alone.

Section 1(3): When does the Act commence?

The general date of commencement is 1 April 2026. The introductory words "Save as otherwise provided in this Act" make this date subject to any different commencement or application rule expressly provided in the Act. The date of Presidential assent, 21 August 2025, should therefore not be mistaken for the general commencement date.

Relevant statutory definitions and expressions

India - Section 2(52)
The definition includes the territory of India referred to in Article 1 of the Constitution, specified maritime areas such as territorial waters, the continental shelf and exclusive economic zone, and airspace above the territory and territorial waters. Read the complete statutory definition when a territorial question arises.
Tax year - Section 2
The Act uses the expression "tax year" for its annual income-tax framework. The precise statutory definition and any transitional provisions should be consulted for determining the year to which a particular income or proceeding relates.
Assessee - Section 2(11)
Broadly, a person by whom tax or another sum is payable under the Act; the definition also includes persons involved in specified assessment proceedings and persons deemed to be assessees or assessees in default.
Income - Section 2(49)
An inclusive definition covering, among other items, profits and gains, dividends and other specified receipts and benefits. Section 1 does not itself define taxable income.

Practical implications of commencement

  • For taxpayers: Do not treat the year 2025 in the title as the general effective date. Begin with 1 April 2026 and check any special provisions and transitional rules.
  • For pending matters: The governing law cannot be determined from Section 1 alone. Examine the relevant savings, repeal and transitional provisions, including provisions dealing with earlier tax years and proceedings.
  • For cross-border matters: Nationwide extent does not mean every foreign receipt is automatically taxable in India. The charging and scope provisions remain decisive.
Important distinction: Short title identifies the law; extent identifies its territorial reach; commencement determines when it takes effect. These concepts perform different legal functions.

Frequently asked questions

Did the Income-tax Act 2025 start on 21 August 2025?

No. That is the date of Presidential assent stated in the supplied Act. Under Section 1(3), the general commencement date is 1 April 2026, unless the Act otherwise provides.

Does Section 1 apply throughout India?

Yes. Section 1(2) expressly states that the Act extends to the whole of India.

Can a provision have a different operative date?

Yes. Section 1(3) expressly qualifies the general commencement rule with the words "Save as otherwise provided in this Act." Any claimed exception must be supported by the particular statutory provision.

Does Section 1 decide which law governs an earlier tax year?

No. That requires examination of the relevant substantive, repeal, savings and transitional provisions and the facts of the case.

Statutory sources and further reading

The text and analysis above are based on the supplied Income-tax Act, 2025, as amended by the Finance Act, 2026, particularly Chapter I, Sections 1 and 2. For subsequent changes, consult the official legislative text and notifications.

Official consolidated Income-tax Act 2025 (PDF) | India Code legislative database

Article reviewed: 10 November 2026. General legal information; statutory text prevails.