TaxReform – Mumbai Outreach Event Highlights Key Changes in New Tax Law
TaxReform – The Income Tax Department in Mumbai conducted a large public awareness programme to familiarise taxpayers with the provisions of the Income Tax Act, 2025, which officially came into force on April 1, 2026. The event was organised under the nationwide “Prarambh 2026” campaign aimed at helping individuals, businesses, and professionals adapt smoothly to the updated tax framework.
More than 700 people attended the outreach session held on Tuesday, according to an official statement. The gathering included chartered accountants, corporate executives, tax consultants, representatives from trade organisations, and individual taxpayers. The department said the initiative was designed to improve understanding of the revised law and encourage easier compliance with the updated rules.
Industry Leaders Participate in Awareness Programme
Several well-known personalities from the business and professional community were present at the event. Among them were Niranjan Hiranandani, Raamdeo Agrawal, Arjun Kapoor, and CS Nanda.
Officials explained that similar awareness drives are being conducted across Mumbai to help taxpayers understand the practical implications of the new law. The department believes that direct engagement with stakeholders will reduce confusion during the transition phase and improve compliance standards.
Focus on Simpler Tax Compliance
Speaking during the programme, Alok Kumar said the revised legislation has been structured to make tax rules easier for ordinary citizens to understand. He noted that the earlier framework had become increasingly complicated over the years because of repeated amendments and layered provisions.
According to him, the updated law introduces a more streamlined and digitally supported system that is intended to simplify filing procedures and reduce compliance difficulties. He added that public outreach efforts would continue so taxpayers receive guidance while adapting to the revised structure.
Business Community Welcomes Transparency Measures
During the event, Hiranandani said the new framework could improve transparency and strengthen trust between citizens and the government. He stated that reducing complicated provisions may help create a more business-friendly environment while encouraging investments and improving the ease of doing business.
He also highlighted the importance of digital systems in the tax administration process, saying technology-driven transparency could contribute to long-term economic growth and support India’s broader development ambitions.
Major Changes Introduced for Salaried Taxpayers
The Income Tax Act, 2025, represents one of the biggest revisions to India’s tax structure in decades. While the government has retained existing tax slabs and rates, the law introduces several important procedural and reporting changes aimed at improving accuracy and accountability.
One of the major updates relates to exemptions available under the old tax regime. The allowance for children’s education expenses has been increased substantially from Rs 100 per child per month to Rs 3,000. Similarly, the hostel expenditure exemption has been raised from Rs 300 to Rs 9,000 per child every month. These benefits will continue to apply for up to two children.
Higher Exemptions and New Reporting System
The revised rules also increase the tax-free limit on employer-provided meals. Under the updated framework, the exemption has been raised from Rs 50 to Rs 200 per meal. Officials believe this could provide significant annual savings to salaried employees depending on company policies and usage patterns.
In addition, the exemption limit for gifts received from employers has been increased from Rs 5,000 annually to Rs 15,000. The benefit is expected to apply under both the old and new tax systems.
On the administrative side, Form 16 will be replaced by a system-generated Form 130. The government says this change is intended to improve standardisation and reduce reporting errors. Taxpayers will also face expanded disclosure requirements, including broader use of PAN-linked financial reporting.
Authorities believe these revisions are necessary to align exemption limits with present-day living costs and inflation trends. The broader objective is to modernise the tax administration process while offering greater relief and convenience to salaried taxpayers.