PRARAMBH 2026: Launched to Promote New Income Tax Act

On March 20, 2026, in New Delhi, Union Finance Minister Nirmala Sitharaman introduced PRARAMBH 2026, a national awareness exercise of the Income Tax Department to educate the citizens about the Income Tax Act, 2025, prior to its coming into effect on April 1, 2026.

The campaign focuses on the simplified communication and voluntary compliance to help India to achieve the vision of Viksit Bharat.

PRARAMBH Launch Event Highlights

• PRARAMBH is an abbreviation of Policy Reform and Responsible Action of the mission Viksit Bharat.

• Important participants were Revenue Secretary Arvind Shrivastava, CBDT Chairman Ravi Agrawal and CBIC Chairman Vivek Chaturvedi.

• Sitharaman encouraged tax officers to be empathetic and technology-oriented, which would fit the M.A.N.A.V. vision of ethical AI governance of PM Modi.

What are the Core Objectives of PRARAMBH?

The information asymmetry in the initiative is addressed by eliminating information gaps by means of multi-channel outreach, meaning print, TV, radio, digital platforms, and social media.

• It facilitates a citizen-friendly tax regime which is transparent and full of trust as it lowers conflicts and promotes compliance.

• It will involve over 300 workshops in the country where stakeholders will be consulted and capacity-built.

• Income Tax Act, 2025 supersedes the 1961 Act with better-defined provisions and published Income-tax Rules, 2026

• This restructuring, along with indirect tax changes, will seek stability and simplicity with the least number of amendments.

TDS and TCS Reforms

The provisions of TDS in different parts (193-196D) are combined into a single framework where thresholds are similar when making interest payments.

The definition of rent is extended to factory buildings, the exemptions of co-operative banks are eliminated, and advertisement is a professional service.

Lower rates of certificates are extended to all TDS/ TCS; there is no cash withdrawal penalty on defaulters.

Tax Regime and Compliance

Section 202 new tax regime becomes default to people where opt-out option is available but is limited to restricted deductions.

Cryptocurrencies, as Virtual Digital Assets (VDAs), are clearly defined and taxed; compliance with digital schemes adopted through faceless schemes.

Income heads keep five categories but with renumbered sections (e.g. salaries: old 15-17 new 15-18)

PRARAMBH encourages Mission Viksit Bharat through promoting a contemporary, humanistic tax environment.