“In a statement issued today, Mr Chandrajit Banerjee, Director General,  CII, said. "CII welcomes the implementation of the Income Tax Act, 2025, which represents a significant milestone in the modernisation of India’s direct tax framework. The new law reflects the Government’s continued commitment to simplifying the tax system, improving structural clarity, and creating a more transparent and predictable tax environment that supports investment, growth and ease of doing business.

The Act marks an important step towards rationalising and reorganising the income tax law, with a focus on reducing complexity and facilitating easier compliance for taxpayers. By streamlining provisions and adopting a more contemporary legislative structure, the new framework is expected to enhance certainty for industry and investors, while strengthening the efficiency of tax administration.

CII further welcomes the timely issuance of the draft rules, forms and frequently asked questions relating to the implementation of the Income Tax Act, 2025. Timely release of these implementation documents will facilitate greater clarity for taxpayers and help ensure a smoother transition to the new framework.

Industry also welcomes the clarity provided by the Government on GAAR applicability, particularly the grandfathering of transactions undertaken prior to 1 April 2017. This clarification provides important reassurance to taxpayers and investors by removing uncertainty around the treatment of legacy transactions, while preserving the integrity of the tax system in addressing aggressive tax avoidance"