New Income Tax Act: CBDT to Release Simplified ITR Forms by January

The Central Board of Direct Taxes (CBDT) will notify the new Income Tax Return (ITR) forms and related rules by January 2026. These will be issued under the simplified Income Tax Act, 2025, which comes into effect from April 1, 2026. CBDT chief Ravi Agrawal said the aim is to make tax filing easier and more user-friendly for all taxpayers.

Focus on Simplicity and Easy Compliance

The government plans to redesign all ITR forms, TDS return formats, and other related documents. Agrawal explained that the goal is to simplify the process so taxpayers have enough time to adjust their internal systems once the forms are released. The Directorate of Systems is working closely with the policy division to ensure the new formats are practical and easy to understand.

Once the forms and rules are reviewed by the law department, they will be officially notified and placed before Parliament.

What Changes Under the New Income Tax Act, 2025?

The Income Tax Act, 2025, passed on August 12, aims to modernise India’s tax laws.
Key features include:

• No change in tax rates, only simpler language
• Removal of outdated and redundant provisions
• Reduction in sections from 819 to 536
• Reduction in chapters from 47 to 23
• Word count cut from 5.12 lakh to 2.6 lakh
• Introduction of 39 tables and 40 formulas to replace long, complex text

These steps are meant to make the tax law clearer, more concise, and easier for both taxpayers and professionals to interpret.

Read More: Income Tax Returns AY 2025-26, 5 Tips for Taxpayers.

Conclusion

The government is preparing to roll out new, simpler ITR forms by January to help taxpayers transition smoothly to the upcoming Income Tax Act, 2025. With fewer sections, clearer language, and simplified processes, the new law aims to make tax compliance more straightforward from April 2026 onward.

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