New Income Tax Bill 2025: Here’s What CA, CS, and CMA Students Must Know for May 2027 and Beyond

The Lok Sabha has officially passed the revised version of the Income Tax Bill 2025. The amendments in the bill will be made effective from April 01, 2026 (financial year 2026-27 or assessment year 2027-28). Meaning, the new system will be applicable for the financial year 2026-27 and onwards. So, all income earned from April 01, 2026, to March 31, 2027, will be taxed according to this new law.

Previously, on July 21, 2025, the Select Committee submitted its 4,500-page report, including 285 recommendations to the parliament; however, the Union Finance Minister, Nirmala Sitharaman, withdrew the bill on August 08, 2025, due to some loopholes in it. Thereafter, on August 11, 2025, the Select Committee, chaired by Baijayant Panda, reintroduced the Income Tax Bill 2025 in Lok Sabha, and this time parliament approved the bill and officially passed it. This big step is aimed towards replacing the around 60-year-old Income Tax Act of 1961 from April 01, 2026.

If you are a student preparing for professional exams such as CA (Chartered Accountancy), CS (Company Secretary), or CMA (Cost and Management Accounting), then this amendment will directly affect which syllabus of study. As the new tax rules will apply to exams to be held in May 2027 and after that. Therefore, if you are planning to appear for any of the aforementioned exams in May 2027 or after, you will need to study the new revised income tax rules and not the old version of 1961.

Therefore, all the students planning to appear for the stated exams in May 2027 are recommended not to buy books or purchase/join classes to study the old Income Tax Act of 1961. Instead, wait for the classes or buy that covers the 2025 new income tax rules, as the new revised bill will update the old syllabus.

This change is one of the major updates done to the Indian tax system and also to the education pattern of professional courses. Students are advised to stay alert and prepare smartly using updated resources. Do not waste time or money on the old syllabus, as it will not help you in your examinations.

A chartered accountant named Bhanwar Borana also pointed out this major issue in a post shared by him on Platform ‘X’, saying, ” Big Update – Income Tax Bill 2025 Passed! Today, Parliament has officially passed the Income Tax Bill 2025. It will kick in from 1 April 2026 (FY 2026-27). Attention May 2027 onwards Exams students (CA/CS/CMA) – Your exams will be under the NEW Income Tax Law! So, don’t opt classes for the old Income-tax Act, 1961 if your attempt is May 2027 or later. Get ready for a fresh start!”

Big Update – Income Tax Bill 2025 Passed!
Today, Parliament has officially passed the Income Tax Bill 2025 ✅
It will kick in from 1 April 2026 (FY 2026-27).

📢 Attention May 2027 onwards Exams students (CA/CS/CMA) – Your exams will be under the NEW Income Tax Law!
So, don’t… pic.twitter.com/57ljaTmuRf

— Bhanwar Borana (@BhanwarBorana) August 11, 2025