New Income Tax Return Forms to Be Notified by January Under Overhauled IT Act

Nov 2025 : The Income Tax Department is set to notify new income tax return (ITR) forms and related rules under the revised Income Tax Act, 2025, by January next year. The updated regulations will come into effect on April 1, 2026, marking a significant shift from the nearly six-decade-old Income Tax Act of 1961.

According to multiple reports, Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal said the department is currently working on designing the new forms with a focus on simplicity and ease of compliance. Speaking at the inauguration of the Taxpayers’ Lounge at the India International Trade Fair (IITF), Agrawal emphasised that the objective is to give taxpayers sufficient time to adjust their systems, processes, and reporting practices.

“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 adapt,” he said.

Tax analysts noted that the existing framework relies heavily on traditional legal language, making many provisions difficult for taxpayers to interpret. They stressed that the new rules should prioritise simplified, user-friendly language, incorporate illustrative examples—particularly for valuation rules—and ensure that form structures are aligned with revamped TDS provisions under the new Act.

The Taxpayers’ Lounge at IITF offers a range of services, including assistance with PAN and e-PAN applications, Aadhaar–PAN linking, and resolution of various PAN-related issues. Visitors can also seek help with e-filing, Form 26AS queries, TDS-related concerns, guidance on international taxation, and issues relating to faceless assessments, appeals, and online filings.

Agrawal further stated that the Income Tax Department is working to clear pending tax refunds by December. “We found that some incorrect refund or deduction claims were being made, which required scrutiny. However, we expect to release the remaining refunds by this month or by December,” he said.

The rollout of the new ITR forms and rules is expected to usher in a more transparent, accessible, and technology-friendly tax regime, aimed at improving taxpayer experience and reducing procedural complexity.

Team Maverick