Income Tax Act 2025: Section 532 for Tax Year 2025-26

Power to frame schemes

[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

Section 532(1) of Income Tax Act 2025

532(1) The Central Government may, by notification, make a scheme for any of the purposes of this Act, so as to impart greater efficiency, transparency and accountability by—

• 532(1)(a) eliminating the interface with the assessee or any other person to the extent technologically feasible;
• 532(1)(b) optimising utilisation of the resources through economies of scale and functional specialisation.

Section 532(2) of Income Tax Act 2025

532(2) The Central Government may, for the purposes of giving effect to the scheme made under sub-section (1), by notification, direct that any of the provisions of this Act shall not apply or shall apply with such exceptions, modifications and adaptations as specified in the notification.

Section 532(3) of Income Tax Act 2025

532(3) Where a scheme has been notified under the provisions of the Income-tax Act, 1961 with a view to eliminating the interface with the assessee or any other person, the Central Government may by notification amend or modify the said scheme as per the provisions of sub-section (1), and the provisions of sub-section (2) shall apply accordingly.

Section 532(4) of Income Tax Act 2025

532(4) Every notification issued under sub-sections (1), (2) and (3) shall, as soon as may be after the notification is issued, be laid before each House of Parliament.

FAQs on Section 532 of the Income Tax Act, 2025

1. What is Section 532 of the Income Tax Act, 2025?
   • Section 532 gives power to the Central Government to frame schemes for better efficiency, transparency, and accountability in tax administration.
2. When does Section 532 come into effect?
   • It comes into effect from 1st April, 2026.
3. Why was Section 532 introduced?
   • To reduce direct interaction between taxpayers and officials, optimize resources, and improve overall tax administration.
4. What does Section 532(1) allow the government to do?
   • It allows the government to introduce schemes that:
     • Reduce interaction with taxpayers through technology.
     • Improve resource utilization and efficiency.
5. How does Section 532(2) affect existing tax laws?
   • The government can modify or exclude certain provisions of the Act to implement a scheme effectively.
6. Can old schemes under the Income Tax Act, 1961 be modified?
   • Yes, under Section 532(3), the government can amend or modify previously notified schemes.
7. Does Parliament have any role in these schemes?
   • Yes, under Section 532(4), every notification related to these schemes must be presented before both Houses of Parliament.
8. How does Section 532 benefit students and young taxpayers?
   • It simplifies tax compliance using technology, reducing paperwork and in-person visits to tax offices.
9. Will Section 532 impact tax filing for students with part-time jobs or freelance income?
   • Possibly, if schemes under this section introduce automation and digital filing improvements.
10. Where can students find updates on schemes framed under Section 532?
    • Notifications will be published by the government and available on the Income Tax Department’s official website.

Section 532 of the Income Tax Act, 2025, effective from April 1, 2026, empowers the Central Government to introduce schemes for enhanced efficiency, transparency, and accountability in tax administration. It allows reducing direct taxpayer interaction using technology, optimizing resource utilization, and modifying or excluding certain provisions of the Act through notifications.

Additionally, it enables amendments to previously notified schemes under the Income Tax Act, 1961. Every such notification must be presented before both Houses of Parliament. This section aims to simplify tax compliance, making it more accessible and efficient for taxpayers, including students and young professionals.