The Income Tax Department is set to release simplified Income Tax Return (ITR) forms and rules by January, ahead of the new Income Tax Act, 2025, which takes effect on April 1, 2026. This overhaul aims to make the tax return process more taxpayer-friendly and less complex, replacing the decades-old Income Tax Act, 1961. The new legislation significantly streamlines the tax structure, reducing sections and word count while introducing clearer tables and formulas.
The Income Tax Department will notify the new return forms and rules under the simplified Income Tax Act, 2025, by January next year, CBDT Chairperson Ravi Agrawal announced on Monday. The new law, passed by Parliament in August, will come into effect from April 1, 2026, marking a major shift from the six-decade-old Income Tax Act, 1961.
Speaking at the launch of the Taxpayers' Lounge at the India International Trade Fair (IITF), Agrawal said the department aims to make the income tax return (I
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FAQ :
The new return forms and rules under the simplified Income Tax Act, 2025, will be notified by January next year.
The new Income Tax Act, 2025, will come into effect from April 1, 2026.
The new Act aims to streamline India's direct tax structure by removing outdated provisions, simplifying legal language, and making the income tax return process simpler and more taxpayer-friendly.
The new Act reduces the number of sections from 819 to 536 and chapters from 47 to 23, cutting the word count by nearly half. It also replaces dense legal text with 39 new tables and 40 formulas for better clarity.
No, the new Act does not introduce any change in tax rates.