The Income Tax Department is set to release new income tax return (ITR) forms and updated rules under the Income Tax Act, 2025.
The notification is expected by January 2026, with the regulations coming into effect from April 1, 2026.
This marks a shift from the Income Tax Act of 1961, which has been in place for nearly six decades.
The department aims to make the new forms simpler and easier for taxpayers to understand and comply with.
Simpler Rules and Easier Compliance
Central Board of Direct Taxes (CBDT) chairman Ravi Agrawal said the new forms are being designed to be user-friendly.
Taxpayers will have adequate time to adjust their systems and processes before the new rules take effect.
Experts noted that the current tax framework uses complex legal language, making it hard to understand.
The updated rules will use simplified language, include examples, and align forms with revamped TDS provisions under the new Income Tax Act, 2025.
Support for Taxpayers
At the Taxpayers’ Lounge, visitors can get help with:
PAN/e-PAN applications
Linking Aadhaar with PAN
E-filing support and Form 26AS queries
TDS-related issues
Guidance on international taxation
Faceless assessments and appeals
Agrawal also confirmed that outstanding tax refunds will be released by December 2025.
The department is reviewing certain claims, but the remaining refunds are expected to be processed soon.
This update makes tax filing simpler and more transparent while ensuring taxpayers have the support and resources they need for a smooth transition to the new system.
