The government plans to introduce new Income Tax Return (ITR) forms in accordance with the Income Tax Act, 2025 before the commencement of the 2027–28 fiscal year. Minister of State for Finance Pankaj Chaudhary revealed this information during a session in the Lok Sabha earlier this week.
Commencing from April 1, 2026, the recently passed new Income Tax Act will replace the long-standing Income Tax Act of 1961. The upcoming legislation aims to streamline complex provisions, eliminate unnecessary complexities, and enhance tax compliance for both individuals and businesses.
In preparation for the new system, a CBDT committee, in collaboration with tax experts, industry organizations, and field officers, is currently streamlining the ITR forms to make them more comprehensible and user-friendly.
The revised tax framework will necessitate updates to all forms, including quarterly TDS returns and annual income tax returns. The redesigned forms will align with the amended tax regulations.
As part of the transition, the ITR forms for the inaugural tax year under the new Act, 2026–27, will incorporate the changes announced in the 2026 Budget. These updated forms will be released prior to the commencement of the FY28.
In the interim, taxpayers will be required to submit returns using the current Income Tax Act, 1961 forms for the income earned in the ongoing financial year.