With the new Income-tax Act, 2025, set to take effect from April 1, the Central Board of Direct Taxes (CBDT) is expected to roll out only 54 out of the 190 forms required under the new law, the Department of Revenue (DoR) informed the Parliamentary Standing Committee on Finance.
DoR officials told the committee that critical and time-sensitive forms will be ready and functional by the deadline, while the remaining forms will undergo modifications and refinements in subsequent phases, in line with relevant statutory timelines.
Panel seeks early rollout of tax rules
The committee, chaired by BJP leader Bhartruhari Mahtab, asked the authorities to expedite the notification and publication of the Income-tax Rules, 2026, and all corresponding forms. This would provide taxpayers and tax professionals sufficient advance time to understand the changes and prepare accordingly, the committee said.
The new Act seeks to streamline provisions, reduce complexity, and introduce modern digital processes. However, the committee stated that legislative simplification must be supported by complete operational readiness on the ground.
The panel noted that the Department is carrying out a large digital overhaul, with Rs 1200 crore allocated for FY 2026-27 for ICT projects to support a Unified Data Architecture under the new law.
Citing recent technical glitches on the e-filing portal in September 2025, the committee recommended comprehensive stress and load-testing of the entire IT infrastructure, including the e-filing portal, Income Tax Business Application (ITBA), and Insight 2.0, well in advance.
Robust data integration in focus
It also stressed the importance of robust Legacy Data Integration (LDI) to handle the massive volume of new returns without disruptions.
The committee called for time-bound completion of training and capacity-building programs for all departmental officers to ensure smooth implementation at the ground level.
To facilitate a smooth transition for the public, the panel welcomed the Rs 27 crore allocation in FY 2026-27 for multimedia campaigns and content creation. It recommended the immediate launch of mega outreach programs, both physical and through media, to educate taxpayers, prevent undue compliance burdens, avoid penalties for genuine transitional errors, and clarify the faceless assessment mechanism.
The committee further directed the authorities to remain receptive to feedback received during these outreach efforts and to implement timely corrective measures to address any emerging issues proactively.