The Government will notify the new income tax return (ITR) forms aligned with the Income Tax Act, 2025 before the 2027-28 fiscal year, Minister of State for Finance Pankaj Chaudhary informed on Monday. The clarification came as part of a written reply in the Lok Sabha.
Chaudhary said the Central Board of Direct Taxes (CBDT) committee on simplification of ITR forms is currently holding wide-ranging consultations with tax experts, professional bodies and field formations of the Income Tax Department. The aim is to redesign tax return forms to make them more streamlined, easier to understand and taxpayer-friendly.
The Income Tax Act, 2025, passed on August 2,1 will come into force from April 1, 2026, replacing the six-decade-old Income Tax Act of 1961. The new legislation seeks to simplify tax laws, reduce verbosity and enhance clarity in compliance.
According to the minister, all forms governed under the new Act, such as TDS quarterly returns and ITR forms, are being completely reworked. The Directorate of Systems is collaborating with the Tax Policy Division to ensure the new formats offer improved usability and reduced compliance burden.
Chaudhary added that the ITR forms under the 2025 Act will also incorporate changes arising from amendments proposed in Budget 2026. Therefore, ITR forms for the first tax year under the new regime (2026-27) will be issued before FY 2027-28.
For the current assessment year (AY 2026-27), he clarified that the consolidation and simplification of ITR forms remain underway and will continue to be notified as per the provisions of the existing Income Tax Act, 1961.
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