ITR varieties, guidelines underneath new Income Tax Act to be notified by January: CBDT chief

The I-T division will by January notify the ITR varieties and guidelines underneath the simplified Income Tax Act, 2025, which is able to come into impact from subsequent fiscal starting April 1, Central Board of Direct Taxes (CBDT) chief Ravi Agrawal stated on Monday (November 17, 2025).

The intent of the division is to maintain the I-T Return varieties easy to ease compliance underneath the brand new legislation, which replaces the six-decade outdated Income Tax Act, 1961, he stated.

“We are in the process of designing forms and rules. We are working towards putting this in place by January so that taxpayers have sufficient time to adapt their processes within their system,” Mr. Agrawal advised reporters after launching the Taxpayers’ Lounge on the India International Trade Fair (IITF).

The intent is to maintain the earnings tax return (ITR) varieties easy for taxpayers to ease compliance, he added.

The Income Tax Act, 2025 was handed by Parliament on August 12.

All the completely different varieties relevant underneath the Income Tax Act, like TDS quarterly return kind and ITR varieties, are being reworked, and the Directorate of Systems is working with the tax coverage division to make the varieties taxpayer-friendly.

After vetting by the legislation division, the foundations shall be notified and laid earlier than Parliament, an official stated.

The Income Tax Act, 2025 will come into impact from subsequent monetary yr, starting April 1, 2026. The new Act will make tax legal guidelines easy and scale back wordage within the laws making it simple to grasp.

The new laws doesn’t impose any new tax price and has solely simplified the language, which was required for understanding the complicated earnings tax legal guidelines.

The new legislation removes redundant provisions and archaic language and reduces the variety of sections from 819 within the Income Tax Act of 1961 to 536 and the variety of chapters from 47 to 23.

The variety of phrases has been lowered from 5.12 lakh to 2.6 lakh within the new legislation, and it has launched 39 new tables and 40 new formulation, changing the dense textual content of the 1961 legislation, to boost readability.