Directorate of Income Tax (Intelligence & Criminal Investigation), Mumbai Organises Mega Outreach Programme on Provisions of New Income Tax Act, 2025 in Mumbai

**Executive Summary** The Directorate of Income Tax (Intelligence & Criminal Investigation), Mumbai, conducted a Mega Outreach Programme on May 19, 2026, to sensitize stakeholders regarding the Income Tax Act, 2025, which took effect on April 1, 2026. Part of the nationwide "Prarambh 2026" initiative, the session focused on ensuring a smooth transition to the new framework and improving the accuracy of financial reporting. The program highlighted critical requirements for filing Statements of Financial Transactions (SFTs) and complying with international reporting standards. **Key Points / Main Content** * **Regulatory Transition** * The Income Tax Act, 2025 and the Income Tax Rule, 2026 officially came into effect on April 1, 2026. * The "Prarambh 2026" initiative serves as a nationwide support mechanism to help taxpayers understand and adapt to the new legal provisions. * **Reporting and Compliance Standards** * Reporting Entities are required to prioritize the timely and accurate filing of Statements of Financial Transactions (SFTs). * SFT data is essential for the Income Tax Department’s Annual Information Statement (AIS) ecosystem. * There is a mandatory focus on improving data quality and minimizing defects in filing reportable accounts under Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) requirements. * **Procedural Simplification** * The new framework introduces changes to various tax forms and simplified provisions. * Specific measures have been implemented to reduce the compliance burden associated with filing SFTs and Reportable Accounts. **Impact Analysis** **Stakeholders: Reporting Entities and Financial Institutions (including Public/Private Banks, Listed Companies, Mutual Funds, and Asset Management Companies)** **Impact** These stakeholders are now governed by the revised framework of the Income Tax Act, 2025. They must manage changes in reporting forms and adhere to stricter data quality standards for SFT, FATCA, and CRS filings which directly populate the government's AIS ecosystem. **Action Required** Entities must ensure the timely submission of SFTs and proactively improve data quality to minimize defects in reportable accounts. They are required to align their internal reporting processes with the simplified provisions and updated forms introduced under the Income Tax Rule, 2026.

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