Government to Issue New ITR Forms by January 2026 as CBDT Anticipates December Recovery in Tax Collections

The Central Board of Direct Taxes has indicated that revised income-tax return forms and rules under the upcoming Income Tax Act, 2025 will be issued by January 2026. 

This timeline is intended to give taxpayers adequate preparation before the new law takes effect on 1 April.

The department has emphasised simplicity and smoother compliance as the older 1961 regime is phased out.

New ITR Forms Expected by January

As per news reports, CBDT Chairman Ravi Agrawal stated that the government is working towards releasing the new ITR forms and related rules by January 2026.

He noted that the formats will be kept straightforward to support easier filing once the new Income Tax Act, 2025 becomes operational from April.

Agrawal made the remarks during the opening of a taxpayers’ lounge at the India International Trade Fair.

Refund Delays Under Scrutiny

Agrawal acknowledged that refunds have been slower this year due to high-value transactions flagged by the system and instances where mismatches were detected. In several cases, taxpayers have been advised to file revised returns to correct errors.

He added that refunds are being carefully reviewed before release to prevent incorrect claims, including those arising from overstated deductions.

Outlook for Collection Growth

The CBDT chairman expressed confidence that tax collections will gain momentum in the coming weeks. He said a rise is anticipated by December, with expectations of a noticeable pick-up by 10 December.

He reiterated that the year’s direct tax target set at ₹25.20 lakh crore for 2025–26 remains achievable.

Current Fiscal Performance

Net direct tax receipts grew 6.99% year-on-year to over ₹12.92 lakh crore as of 10 November. Refund payments, however, declined 18% during the same period to approximately ₹2.42 lakh crore.

Agrawal mentioned that the department has identified incorrect claims in some filings, leading to additional scrutiny, but expressed hope that pending refunds will be released by late November or December.

Read More: Why Are Income Tax Refunds Getting Delayed in 2025?

Conclusion

With the upcoming notification of new ITR forms and ongoing checks on refund claims, the tax administration is preparing for a transition to the simplified income-tax framework. The department expects a steadier flow of collections in December as it works towards meeting the fiscal year’s targets.

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