The Income Tax Department has initiated a slew of measures, including penalties and prosecution, to improve transparency in income tax return (ITR) filing, processing and refund issuance. A few months ago, the department conducted a large-scale verification operation across the country, during which individuals and entities facilitating fraudulent claims of deductions and exemptions in ITRs were raided.
Refunds to individuals fall sharply this year
Official data recently released by the Central Board of Direct Taxes (CBDT) suggests that income tax refunds have slowed down significantly this year due to stringent measures and scrutiny. Refunds issued to individual taxpayers are down nearly 38% this year (from April 1 to November 10, 2025).
Remaining refunds to be released by December
The Income Tax Department will release outstanding tax refunds by December, said CBDT chief Ravi Agrawal. “We have analysed and found that some wrong refunds or deductions were being claimed so there is scrutiny, but we hope to release the remaining refunds by this month or December,” he was quoted as saying by IANS at the inauguration of the Taxpayers’ Lounge at the India International Trade Fair (IITF) here.
New ITR forms under the Income Tax Act, 2025 to be notified by January
The Income Tax Department will notify new income-tax return (ITR) forms and related rules under the streamlined Income Tax Act, 2025, by January. The updated regulations will be effective from April 1, 2026.
The updated rules will mark the transition from the nearly six-decade-old Income Tax Act of 1961, multiple reports cited CBDT chairman Ravi Agrawal as saying.
New ITR forms to be simpler and easier to comply with
Agrawal said the department is designing the new forms to make them simple, easy to comply with and quick to adapt to.
“We are in the process of designing the new forms and rules, and our aim is to notify them by January so that taxpayers have adequate time to adjust their systems and processes,” he was quoted as saying at the IITF.
Analysts call for simpler language and better structure
Analysts said the current framework of rules is largely drafted in traditional legal language, making it hard to understand and interpret. They noted that the new rules should use simplified language, include illustrations for valuation rules and align form structures with revamped TDS provisions under the new Income Tax Act, 2025.
Services offered at the Taxpayers’ Lounge
The Taxpayers’ Lounge offers a wide range of assistance and interactive resources that help with PAN/e-PAN applications, Aadhaar–PAN linking and resolving PAN-related queries.
It also provides support for e-filing, Form 26AS queries, TDS issues, guidance on international taxation, faceless assessment and appeals, and other online filing issues.
