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New Income Tax Act: ITR Forms To Be Notified Before FY28; All You Need To Know
New Income Tax Act: ITR Forms To Be Notified Before FY28; All You Need To Know
The government will notify the new income tax return (ITR) forms based on the Income Tax Act, 2025 before the start of the 2027–28 financial year, Minister of State for Finance Pankaj Chaudhary has said. Responding to a question in the Lok Sabha, he noted that the Central Board of Direct Taxation (CBDT) is in the middle of extensive consultations with tax experts, industry bodies and field officials to redesign the ITR framework.
The Income Tax Act, 2025, which was enacted on August 21 this year, will replace the six-decade-old Income Tax Act of 1961 and come into effect from April 1, 2026. The new legislation aims to simplify tax provisions, reduce the overall word count of the law and make compliance easier for taxpayers.
As part of this transition, all forms under the new law, including quarterly TDS return forms and ITR forms, are being reworked. The Directorate of Systems is collaborating with the tax policy division to ensure these forms follow a more intuitive and taxpayer-friendly structure.
Chaudhary said the ITRs aligned with the 2025 Act would also need to incorporate amendments that will be introduced in Budget 2026. As a result, the first set of new-format ITRs for tax year 2026-27 will be notified ahead of the 2027-28 fiscal year.
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For the current financial year, however, the existing framework under the Income Tax Act, 1961 will continue to apply. The minister clarified that the process to consolidate and simplify ITR forms for income earned in FY 2025-26 (Assessment Year 2026-27) is underway and these forms will be notified as per current law.
The upcoming overhaul of India's income tax system marks one of the most significant legislative updates in decades, with the government positioning the new Act as a move towards clarity, ease of compliance and modernisation of the tax administration architecture.
Source: News18
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