Simpler, smarter ITR forms ahead as New Income Tax Act kicks in from April
New Delhi, Aug 26, 2025
From April 2026, your ITR filing experience will be simpler, with pre-filled smart forms and a cleaner tax framework.
Filing income tax returns (ITR) is set to become simpler, smarter, and more user-friendly as the Income Tax Department prepares for the rollout of the new Income Tax Act, 2025, which will take effect from April 1, 2026.
Officials told PTI that the department will overhaul ITR forms, remove redundant rules, and make language clearer for taxpayers. The Central Board of Direct Taxes (CBDT) expects the new forms to be ready by December 2025, after which they will be shared for public consultation.
What’s Changing in ITR Filing?
According to CBDT member (Legislation) Ramesh Narain Parbat, quoted in The Economic Times, the goal is to make the forms “smarter, with more pre-filled sections,” so that taxpayers spend less time entering repetitive details.
Key changes in the pipeline:
Unified “Tax Year”: The new law replaces the old concept of financial year and assessment year with a single “tax year.”
Pre-Filled Information: More sections will come pre-filled, reducing errors and duplication.
TDS Tweaks: Forms for tax deducted at source (TDS) will also be reworked.
Simplified Language: Legal jargon will be removed to make forms easier to understand.
“Our first priority is to prepare and roll out forms required during the next financial year. Already, teams are working on it,” Parbat told ET.
Why the Overhaul Now?
President Droupadi Murmu gave her assent to the new Income Tax Act on August 21, 2025, replacing the archaic Income Tax Act of 1961 after more than six decades. The law was passed by Parliament on August 12.
CBDT has been working on this transition since February 2025, when the Bill was first introduced. A committee under a Chief Commissioner has already identified outdated rules, held consultations, and drafted the first version of the new rules.
The department is also upgrading IT systems and training officers across India for smooth implementation.
What It Means for You (Taxpayers)
For individuals and businesses, this means:
Easier ITR filing with fewer forms and smarter automation.
Greater certainty on deductions and exemptions, thanks to FAQs and guidance notes.
Lower compliance burden, with redundant rules eliminated.
Digital-first processes that minimize physical paperwork.
Parbat also noted that the new law is designed to provide clarity not just to taxpayers but also to tax administrators, reducing disputes and confusion.
Timeline of Rollout
Feb 2025: Work on new rules began.
Aug 2025: Act passed and approved by President.
Dec 2025: Draft rules and forms to be finalized and notified.
April 2026: Taxpayers will file their returns under the new system.
The committee has identified redundancies, done public consultation and presented the draft rules to the Tax Policy & Legislation (TPL) division of the CBDT. Once examined by the CBDT, the draft rules will be sent to the Union Finance Minister for approval.
After vetting by the law department, the rules will be notified and laid before Parliament.
"The new I-T Act is coming into effect from April 1, 2026. So, our rules and forms have to be ready so that we can give effect to the new Act. So, we will be preparing them right away. The rules will be ready by year-end, which is December 2025," Parbat told PTI.
With regard to the changes in the tax forms, the CBDT member said all the different forms applicable under the Income Tax Act, like TDS quarterly return form, ITR forms, are being reworked, and the Directorate of Systems is working with the TPL division to roll them out.
"Our Act has changed... So it will be a brand new form. In the form, we are following the same principle, that they should be simple enough so that the ease of doing business is more and more," Parbat added.
With inputs from PTI
[The Business Standard]
