The government will notify new Income Tax Return (ITR) forms based on the Income Tax Act, 2025 before the start of the 2027–28 financial year.
This update was shared by Minister of State for Finance Pankaj Chaudhary in the Lok Sabha.
He said the Central Board of Direct Taxes (CBDT) is currently consulting tax experts, industry groups, and field officials to redesign the ITR framework.
Income Tax Act, 2025 to Replace 1961 Law
The Income Tax Act, 2025, passed on August 21, will replace the six-decade-old Income Tax Act of 1961.
The new law will come into effect from April 1, 2026.
Its main goal is to simplify tax provisions, reduce legal complexity, and make compliance easier for taxpayers.
The government also aims to cut down the overall length of the tax law.
All Tax Forms Being Redesigned
As part of this change, all tax-related forms are being reworked.
This includes quarterly TDS return forms and ITR forms.
The Directorate of Systems is working closely with the tax policy division to ensure the new forms are clear, intuitive, and user-friendly.
Budget 2026 Changes Will Be Included
The new ITR forms will also factor in amendments announced in Budget 2026.
Because of this, the first set of ITRs under the 2025 Act will apply to income earned in FY 2026–27.
These updated ITR forms will be notified before the 2027–28 financial year begins.
No Change for the Current Financial Year
For now, taxpayers can relax.
The existing Income Tax Act, 1961 will continue to apply for the current financial year.
The government is already working on simplifying ITR forms for FY 2025–26 (Assessment Year 2026–27) under the current law, and these forms will be notified in due course.
A Major Step in Tax System Reform
This overhaul of India’s income tax system is one of the biggest changes in decades.
The government says the new law will bring greater clarity, easier compliance, and a more modern tax administration.
