Income Tax Act – “The new income tax return (ITR) form based on the IT Act 2025 will be notified before the 2027-28 financial year,” Minister of State for Finance Pankaj Chaudhary said on Monday (December 8, 2025). “The CBDT committee is holding extensive consultations with tax experts, institutional bodies and field organizations of the IT department on simplification of ITR forms,” ​​he said in a written reply in the Lok Sabha.

Parliament Winter Session Day 6 Live: PM Modi’s speech devoid of facts, says Priyanka The Income Tax Act, 2025, enacted on August 21, will come into effect from the next financial year starting April 1, 2026. The new Act will replace the existing Income Tax Act, 1961, and will simplify the tax laws and reduce wording in the law making it easier to understand. All the different forms applicable under the Income Tax Act, such as Tax Deducted at Source (TDS) quarterly return forms and ITR forms, are being reworked, and the Systems Directorate is working with the Tax Policy Division to make the forms taxpayer-friendly.

The Income Tax Act has received the assent of President Draupadi Murmu, “The ITR forms relating to the Income Tax Act, 2025 will require changes consequent to the amendments to the said Act made during Budget, 2026, and accordingly, the ITRs relating to the tax-year 2026-27 will first be notified before the financial year 2027-28,” Mr Chaudhary said. Regarding ITR forms for income earned in the current financial year (assessment year 2026-27), Mr Choudhary said that consolidation and simplification of ITR forms is in the process as they will be notified as per the provisions of the Income Tax Act, 1961.