The Income-tax Act, 2025 is now in force. But updating your tax team’s reference material is only one part of the transition.
The bigger exercise is checking whether the business processes that apply the law have caught up. A few areas deserve a closer look:
• TDS codes and payment classifications in the ERP
• Payroll calculations and employee declarations
• Vendor-payment workflows and tax configurations
• Forms, reporting fields and compliance calendars
• Records that fall under the old Act versus the new one
A particularly easy detail to miss is the transition between March and April 2026. A transaction’s timing can determine which provisions apply, and outdated references can create avoidable reporting or validation problems.
The Income Tax Department has published comparison tools for the two Acts, Rules and forms, along with transition guidance. Use those resources to validate your organisation’s specific requirements rather than relying on a generic mapping exercise.
The practical test is simple: can your system apply the right treatment to the right transaction, under the right law, and produce the right report?
Save this checklist for your next tax-process review. And share it with the person responsible for your ERP or payroll configuration.
