The government will notify the new Income Tax Return (ITR) forms under the Income Tax Act, 2025 before the start of the 2027–28 financial year, Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha on Monday.
He said the Central Board of Direct Taxes (CBDT) committee on ITR simplification is conducting extensive consultations with tax experts, institutional bodies, and field formations of the Income Tax Department to redesign the forms.
When will the new income tax act come under effect?
The new Income Tax Act, enacted on August 21, 2025, will come into effect from April 1, 2026, replacing the 1961 legislation.
The updated law aims to simplify tax provisions, reduce wordage, and make compliance easier and more transparent. As part of this overhaul, all forms required under the Act—including quarterly TDS returns and annual ITR forms—are being reworked to align with the updated tax framework and improve user-friendliness.
Chaudhary on ITR reforms
Chaudhary said that ITR forms for the first tax year under the new regime, 2026–27, will incorporate changes from the 2026 Budget and will be notified ahead of FY28. Meanwhile, ITR forms for income earned in the current fiscal will continue to be issued under the existing Income Tax Act, 1961.
