**Executive Summary**
On May 22, 2026, the Income Tax Department held "PRARAMBH–2026" in Mumbai to educate trade and industry stakeholders on the New Income-tax Act, 2025, and New Income-tax Rules, 2026. The event focused on clarifying legislative reforms in International Taxation and Transfer Pricing while facilitating a smooth transition from the 1961 Act. Key highlights included the introduction of the ‘Kar Saathi’ AI-powered chatbot to assist taxpayers with real-time compliance queries.
**Key Points / Main Content**
**Legislative Objectives and Framework**
* The New Income-tax Act, 2025, is designed as a simplified, progressive, and taxpayer-friendly framework aimed at enhancing transparency.
* The reform focuses on reducing administrative complexities and promoting ease of compliance within the tax system.
* The outreach initiative, themed “Bridging Borders, Building Trust,” emphasizes proactive engagement between the Department and stakeholders.
**International Taxation and Transfer Pricing**
* The document places specific emphasis on updated provisions regarding International Taxation and Transfer Pricing under the new Act.
* Technical sessions provided a comparative overview of the changes between the Income-tax Act, 1961, and the New Income-tax Act, 2025.
**Administrative and Regulatory Changes**
* The New Income-tax Rules, 2026, introduce new and merged forms to streamline reporting.
* The Department highlighted transitional provisions to manage the shift from the old legislative framework to the 2025 Act.
**Technological Support**
* The Department introduced ‘Kar Saathi’, an AI-powered chatbot designed to provide taxpayers with real-time guidance and assistance on tax-related queries.
* Interactive panel discussions and open house sessions were utilized to address specific stakeholder concerns regarding the new rules and forms.
**Impact Analysis**
**Stakeholders from Trade & Industry**
**Impact**
They are directly affected by the transition to a new legislative framework, including revised international taxation rules and merged compliance forms.
**Action Required**
Stakeholders need to familiarize themselves with the New Income-tax Act, 2025, and Rules, 2026, to ensure effective compliance and a smooth transition from the 1961 Act.
**General Taxpayers**
**Impact**
Taxpayers benefit from a simplified tax administration system and the availability of real-time digital assistance tools.
**Action Required**
Taxpayers are encouraged to engage constructively with the Department and utilize the ‘Kar Saathi’ AI chatbot for assistance with tax-related queries.
**Income Tax Department**
**Impact**
The Department is responsible for managing the transition, educating the public, and facilitating ease of compliance through outreach and technology.
**Action Required**
Senior officers must continue proactive stakeholder engagement, address queries regarding transitional provisions, and maintain the ‘Kar Saathi’ platform for taxpayer support.
Key Entities Referenced
Income-tax Act, 2025: A landmark legislative reform aimed at simplifying tax administration, enhancing transparency, and promoting ease of compliance.
Income-tax Rules, 2026: The regulatory framework accompanying the new tax act, incorporating updated/merged forms and transitional provisions from the 1961 Act.
Central Board of Direct Taxes (CBDT): The primary regulatory body responsible for the legislation and administration of the new income tax framework.
Kar Saathi: An AI-powered chatbot introduced by the Income Tax Department to provide taxpayers with real-time guidance and assistance.
PRARAMBH–2026: An outreach initiative designed to create awareness and enhance stakeholder understanding of the new tax laws and international taxation provisions.
Ministry of Finance
“PRARAMBH–2026” Outreach Event on Income
Tax Act 2025 at Kautilya Bhawan Mumbai
Stakeholders from Trade & Industry participate in session on
International Taxation and Transfer Pricing under the new
Income Tax Act 2025
Posted On: 22 MAY 2026 6:26PM by PIB Mumbai
Mumbai, 22 May 2026
“PRARAMBH–2026,” an Outreach Event on the New Income-tax Act, 2025 and New Income-tax
Rules, 2026 was organised today by the Income Tax Department, CCIT (International Taxation
and Transfer Pricing), West Zone, Mumbai, under the theme “Bridging Borders, Building Trust.”
The outreach initiative was aimed at creating awareness and enhancing stakeholder
understanding of the provisions of the new Income-tax Act, 2025 and the Income-tax Rules,
2026, with special emphasis on International Taxation and Transfer Pricing.
Central Board of Direct Taxes (CBDT), Member (Legislation) Shri Prasenjit Singh, graced the
occasion as the Chief Guest. Principal Chief Commissioner of Income Tax (International
Taxation), New Delhi Ms. Monica Bhatia, was the Guest of Honour. The event was hosted by
Chief Commissioner of Income Tax (International Taxation), West Zone, Mumbai Shri Mohit Jain,
delivered the Welcome Address, underlining the Department’s commitment to meaningful and
direct engagement with key stakeholders on the landmark legislative reform represented by the
Income-tax Act, 2025.
In his address, CBDT Member (Legislation) Shri Prasenjit Singh, emphasised that the Income-
tax Act, 2025 is a simplified, progressive, and taxpayer-friendly legislation aimed at enhancing
transparency, reducing complexities, and promoting ease of compliance in the evolving tax
administration system. He highlighted the importance of proactive engagement between the
Department and stakeholders in ensuring a smooth transition to the new legislative framework.
Pr. CCIT (International Taxation), New Delhi, Ms. Monica Bhatia, in her Opening Remarks, drew
attention to the significance of the International Taxation and Transfer Pricing provisions under
the new Act and encouraged stakeholders to engage constructively with the Department for
effective compliance. This was followed by a Short Video presentation on the Income-tax Act,
2025, familiarising participants with the key legislative and regulatory developments introduced
under the new tax framework.
An interactive technical session on “Ushering in the New Income-tax Act, 2025 & New Income-
tax Rules, 2026 – Special Focus on International Taxation & Transfer Pricing” was conducted by
senior officers of the Department. The session provided detailed insights into the provisions of
the new Act and Rules, including a comparative overview vis-à-vis the Income-tax Act, 1961,
enabling participants to appreciate the scope and implications of the transition.The programme also featured an Interactive Panel Discussion on Taxpayers’ Concerns on the
New Income Tax Act, 2025 & New Income Tax Rules, 2026, followed by a comprehensive
questions and answer and Open House Session with stakeholders, wherein participants raised
several queries and sought clarifications on issues relating to the provisions in the New IT Act
and new/merged forms and rules in IT rules 2026, transitional provisions from the Income-tax
Act, 1961 to the new Income-tax Act, 2025, and provisions relating to International Taxation
and Transfer Pricing. All queries were comprehensively addressed by senior officers of the
Department.
The programme also featured a demonstration of ‘Kar Saathi’, the Income Tax Department’s
newly introduced AI-powered chatbot designed to provide taxpayers with real-time guidance
and assistance on tax-related queries, which was received with considerable interest by the
participants.
The outreach programme was widely appreciated by participants from trade and industry for its
informative, practical, and interactive approach towards taxpayer education and stakeholder
engagement.* * *
PIB Mumbai | Nitin Fulluke/Darshana Rane
Follow us on social media: @PIBMumbai /PIBMumbai /pibmumbai pibmumbai[at]gmail[dot]com /PIBMu
mbai /pibmumbai
(Release ID: 2264271) Visitor Counter : 137
Read this release in: Marathi