PRARAMBH 2026 Campaign: Ushering in the Income Tax Act, 2025 for Viksit Bharat
The PRARAMBH 2026 campaign, launched by Finance Minister Nirmala Sitharaman on March 20, 2026, equips taxpayers for the Income Tax Act, 2025 effective April 1, 2026, replacing the 1961 Act. This multi-channel drive promotes voluntary compliance and simplifies India’s direct tax regime amid Mission Viksit Bharat.
Launch and Objectives of PRARAMBH 2026
PRARAMBH 2026 stands for Policy Reform and Responsible Action for Mission Viksit Bharat, a nationwide multimedia campaign across print, TV, radio, digital, and social media. Launched in New Delhi, it educates citizens, professionals, and businesses on the new Act’s provisions for seamless transition.
Objectives include fostering trust-based taxation, reducing litigation via clear language, and enhancing transparency after slashing sections from over 800 to 536 across 23 chapters (from 47). It features over 300 workshops for tax officials, CAs, and trade bodies, plus resources in 10+ regional languages.
Key Digital Innovations
‘Kar Saathi’, an AI chatbot, offers 24/7 query resolution in 12 Indian languages via the Income Tax portal. Income Tax Website 2.0 provides user-friendly navigation, faster processing, and faceless services.
Aligned with M.A.N.A.V. Framework—Moral systems, Accountable governance, National sovereignty, Accessible AI, Valid systems—this human-centric approach boosts compliance. Guidance notes, videos, and brochures ensure rural-urban outreach.
Core Changes in Income Tax Act, 2025
The Act unifies “Previous Year” and “Assessment Year” into a single “Tax Year”—a 12-month period from April 1 to March 31, starting Tax Year 2026-27 on April 1, 2026. For new businesses, it begins from setup date.
Default Tax Regime under Section 202 makes the new regime permanent, with rebates enabling zero tax up to ₹12 lakh; standard deduction rises to ₹75,000 for salaried. TDS provisions consolidate under one section (e.g., Section 393 equivalent), easing compliance.
Forms reduced from 396 to 190, rules from 510 to 333. ITR-U filing extends to 48 months.
Taxation of Digital Assets
Virtual Digital Assets (VDAs) like cryptocurrencies get formalized taxation at 30% flat rate on gains, no deductions/loss set-offs (Schedule VDA in ITR-2/3). This regime differs from normal income, aligning with global trends while curbing speculation.
Implications for Taxpayers and the Economy
Simplifications cut litigation, promote voluntary filings, and support Viksit Bharat via efficient revenue. Salaried up to ₹12.75 lakh pay near-zero tax; presumptive schemes exempt small entities (<₹10 crore turnover, <5% cash).
For UPSC, it reflects governance reforms, digital India, and fiscal federalism.
FAQs
Policy Reform and Responsible Action for Mission Viksit Bharat, awareness drive for Income Tax Act, 2025.
April 1, 2026, for Tax Year 2026-27.
AI chatbot for real-time tax queries in 12 languages.
536 sections in 23 chapters vs over 800 in 47 chapters.
Unified 12-month period April 1 to March 31, replacing FY/AY.
₹12 lakh after rebates/standard deduction. What does PRARAMBH 2026 stand for?
When does Income Tax Act, 2025 take effect?
What is Kar Saathi?
How many sections in new Act vs old?
What is Tax Year?
Zero tax up to how much in default regime?
