Last mentioned: Feb 27, 2026
First TDS Cycle
First reporting cycle under new TDS and Form 24Q formats begins.
Income Tax Act 2025
New tax regime takes effect, replacing the 1961 Act with revised TDS and reporting rules.
Tax Act Implementation
Income Tax Act 2025 takes effect, replacing the 1961 legislation.
Income Tax Act 2025
New tax rules and reporting formats (Form 24Q, Form 16) take full effect.
Compliance Advisory
Experts urge immediate audits of compensation structures and payroll systems.
Preparation Window
Employers urged to audit compensation structures and update payroll software.
Preparation Window
Critical period for HR and SaaS providers to audit and restructure payroll systems.
Labour Codes Active
All four national Labour Codes (Wages, Social Security, IR, OSH) become effective.
Labour Codes Active
The four national Labour Codes (Wages, Social Security, IR, and OSH) become operational.
Labour Codes Active
Implementation of the four national Labour Codes begins across India.
India is implementing a sweeping regulatory transformation as the four national Labour Codes and the new Income Tax Act 2025 converge. These reforms mandate a 50% basic salary floor and 48-hour final settlements, forcing a massive wave of software re-engineering for HR tech and SaaS providers.
Indian employers face a dual regulatory shift as the four national Labour Codes and the Income Tax Act 2025 converge to redefine payroll compliance. Key changes include a mandatory 50% basic salary threshold and a strict two-day window for final settlement, necessitating immediate structural audits.
Indian employers are facing a massive regulatory shift as the four national Labour Codes and the Income Tax Act 2025 converge to redefine payroll compliance. These reforms mandate a 50% basic salary floor and a two-day settlement window for departing employees, requiring immediate structural and technological audits.