Changes in direct tax framework to come into play from April 1 with rollout of new income-tax regime

New Delhi, March 30 -- A major shift in the direct tax framework will come into play from April 1 with the rollout of the new income-tax regime aimed at simplifying compliance and enhancing transparency.

Under the reform, a unified 'Tax Year' will come into play replacing the long-standing distinction between the Previous Year (PY) and Assessment Year (AY).

This move is designed to eliminate confusion by creating a single reference period for income earning, assessment and compliance timelines. For individual taxpayers, this could make filing returns more intuitive and reduce procedural ambiguities that have persisted for decades.

The reforms also expand benefits under house rent allowance (HRA), particularly for taxpayers living in citi...