Summary of this article
New ITR forms coming before FY28 implementation.
Income Tax Act 2025 aims for simpler compliance.
Current filings continue under 1961 Act.
The government has announced that the new Income Tax Return (ITR) forms will be released before the start of the 2027-28 fiscal year, and they are going to be based on the Income Tax Act, 2025.
Minister of State for Finance Pankaj Chaudhary shared this insight in a written reply in the Lok Sabha, explaining that work is already in progress regarding the new forms.
The Income Tax Act, 2025, was passed on August 21 and will officially come into effect on April 01, 2026. This law is a replacement for the old Income Tax Act, 1961, which has been the norm for the past 60 years. The main purpose of the new act is to make tax rules simpler and shorter for people to understand easily. With the changes now official, the government aims to simplify tax compliance and make it easier for individuals and businesses to understand.
All tax-related forms, TDS, and ITR included, are being redesigned as a part of this change. The Directorate of Systems is working on creating forms that are easier to use by taxpayers. This time around, the entire focus is on making tax paying easier, convenient, and simple to understand for people.
Pankaj Choudhary also said that the CBDT committee is also working on ITR simplification, and they are in discussion with tax experts, professional bodies, and officers from the Income Tax Department. These discussions are open now as a way to understand the problems that are faced by taxpayers, and with the aim of simplifying this important process for people.
For these changes to be officially and properly implemented, the new ITR forms must be reflected in the Union Budget of 2026, which is why all the forms will be notified before the 2027-28 fiscal year.
As for the current income earned in this financial year, Pankaj Choudhary said that the simplification of these forms is still underway, which means that for this year, the pre-existing Income Tax Act, 1961, forms will be used as the new act is not in force as of yet.
In the next few years, taxpayers can expect major changes in the structure and design of ITR forms, which will bring more clarity and convenience. While the new Income Tax Act has been introduced, it is still in the early curative procedures. The full implementation is expected to be fully implemented after April 2026.
