Will the Government Introduce New ITR Forms by January 2026?
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Synopsis
The Income Tax Department is preparing to unveil new ITR forms by January 2026. This transition will simplify compliance for taxpayers and replace the outdated 1961 Act. With effective measures for assistance and guidance, the department aims to ensure a smooth process for taxpayers ahead of the April 2026 implementation.
Key Takeaways
- New ITR forms to be notified by January 2026.
- Regulations will be effective from April 1, 2026.
- Transition from the Income Tax Act of 1961.
- Focus on simplifying language and compliance.
- Support available through the Taxpayers' Lounge.
New Delhi, Nov 18 (NationPress) The Income Tax Department is set to announce new income‑tax return (ITR) forms and associated rules under the revised Income Tax Act, 2025, by January, with the changes taking effect from April 1, 2026.
This update will signify a shift from the nearly sixty-year-old Income Tax Act of 1961, according to various reports quoting Central Board of Direct Taxes chairman Ravi Agrawal.
Agrawal mentioned that the department aims to create new forms that are designed to be simple and user-friendly for compliance.
“We are currently in the process of developing new forms and rules, with the goal of notifying them by January to provide taxpayers sufficient time to adjust their operations,” he stated during the opening of the Taxpayers' Lounge at the India International Trade Fair (IITF).
Experts noted that the existing rules are often expressed in traditional legal language, making them complex to interpret. They suggested that the new regulations should employ simplified language, include examples for valuation rules, and align the structure of forms with the updated TDS provisions under the new Income-tax Act 2025.
The Taxpayers’ Lounge provides a variety of assistance and interactive resources for tasks such as PAN/e‑PAN applications, Aadhaar–PAN linking, and resolving PAN-related issues.
Additionally, it will offer help with e‑filing, inquiries regarding Form 26AS, TDS matters, guidance on international taxation, faceless assessments and appeals, as well as other online filing concerns.
Agrawal also mentioned that the Income Tax Department aims to release outstanding tax refunds by December. “We have identified some incorrect refunds or deductions being claimed, necessitating scrutiny, but we anticipate completing the release of remaining refunds by this month or December,” he added.
Point of View
The introduction of new ITR forms represents a necessary modernization of tax regulations. This shift aims to facilitate easier compliance for taxpayers and reflects a significant update from the long-standing 1961 Act. It is crucial for the nation to adapt to these changes to enhance tax efficiency and user experience.
NationPress
18/11/2025
Frequently Asked Questions
What are the new ITR forms?
The new ITR forms are updated versions being introduced by the Income Tax Department under the Income Tax Act, 2025, aimed at simplifying the tax filing process for taxpayers.
When will the new rules take effect?
The new rules are set to come into effect starting April 1, 2026.
Why are the changes necessary?
The changes are necessary to replace outdated regulations from the Income Tax Act of 1961 and to make the tax filing process more accessible and comprehensible.
What assistance will the Taxpayers' Lounge provide?
The Taxpayers' Lounge will offer support for PAN applications, Aadhaar-PAN linking, e-filing, and various tax-related queries.
Will there be any refunds released soon?
Yes, the Income Tax Department is expected to release outstanding tax refunds by December.
