India’s New Income-tax Act: A Compliance Guide for Companies, the latest publication by Dezan Shira & Associates, is out now and available for free download through the Asia Briefing Publication Store.
In this issue
- Understanding India’s New Income Tax Framework
- Operationalizing Compliance Under the Income-tax Act, 2025, and Income-tax Rules, 2026
- Impact of India’s New Income-tax Act Across Business Entities
- FAQS: Adapting to India’s New Direct Tax Regime
India’s direct tax regime has been comprehensively restructured with the enactment of the Income-tax Act, 2025, replacing legislation that had been in force for over six decades. The new framework is intended to enhance simplicity, transparency, and alignment with modern business and accounting practices, carrying significant implications for companies operating in India. With the notification of the Income-tax Rules, 2026, the regime became effective from April 1, 2026, requiring businesses to promptly evaluate regulatory changes and align their compliance processes accordingly.
This publication serves as a practical reference for a wide range of stakeholders, including foreign enterprises, domestic companies, wholly owned subsidiaries, and limited liability partnerships, seeking to assess the potential impact of the new law on their direct tax obligations and practices.
Although the number of tax provisions and forms has been rationalized, the new regime does not dilute existing obligations related to tax filings and income disclosure. Instead, it introduces a more streamlined, responsive, and contemporary framework that is better aligned with global taxation and accounting standards.
Chapter summaries
Chapter 1 provides a comprehensive overview of the Income-tax Act, 2025, and the Income-tax Rules, 2026. It also includes a comparative assessment of the new framework against the previous legislation, enabling stakeholders to clearly understand key changes in provisions, the increased digitization of tax processes, and areas that remain unchanged under the revised direct tax regime.
Chapter 2 offers a detailed examination of the operational compliance requirements under the new law. It outlines updated tax forms and provides practical guidance for companies to establish and maintain a structured compliance calendar for FY 2026-27, covering monthly, quarterly, and annual obligations.
Chapter 3 delivers an in-depth analysis of the implications of India’s new income tax regime across different business structures, including domestic companies, foreign subsidiaries, limited liability partnerships (LLPs), and one-person companies. It further highlights potential advantages and strategic considerations for each entity type under the revised framework.
Chapter 4 addresses key practical questions that businesses may encounter while navigating the new regime. The Q&A section clarifies critical issues such as tax assessments, exemptions, scenarios involving the concurrent applicability of the Income-tax Act, 1961, and updates to taxation treaties.
Sample infographics
For business inquiries, please contact our India offices at India@dezshira.com.
