The government will introduce new Income Tax Return (ITR) forms under the Income Tax Act, 2025 before the start of the 2027–28 financial year.
This update was shared by Minister of State for Finance Pankaj Chaudhary in the Lok Sabha.
He said the Central Board of Direct Taxes (CBDT) is currently consulting tax experts, industry bodies, and field officers to redesign the ITR system.
Income Tax Act, 2025 to Replace Old Law
The Income Tax Act, 2025, passed on August 21 this year, will replace the 1961 Income Tax Act that has been in place for over 60 years.
The new law will come into force from April 1, 2026.
Its main goal is to simplify tax rules, reduce complex language, and make tax compliance easier for taxpayers.
ITR and TDS Forms to Get a Fresh Look
As part of the transition, all tax-related forms are being redesigned.
This includes Income Tax Returns as well as quarterly TDS return forms.
The Directorate of Systems is working with the tax policy division to ensure that the new forms are more intuitive and user-friendly, especially for individual taxpayers.
Budget 2026 Changes Will Be Included
The new ITR forms will also reflect any amendments announced in Budget 2026.
Because of this, the first set of ITR forms under the new law, meant for income earned in FY 2026–27, will be notified before the 2027–28 financial year begins.
No Change for Current Financial Year
For now, taxpayers should note that the existing Income Tax Act, 1961 will continue to apply for the current financial year.
ITR forms for income earned in FY 2025–26 (Assessment Year 2026–27) will be notified under the current law, though efforts to simplify these forms are already underway.
A Major Shift in India’s Tax System
The upcoming changes mark one of the biggest reforms in India’s income tax system in decades.
The government aims to bring more clarity, easier compliance, and a modern tax administration through the new Income Tax Act and redesigned return forms.
