The new income tax return (ITR) form aligned with the Income Tax Act, 2025, will be issued before the start of the 2027–28 financial year, Minister of State for Finance Pankaj Chaudhary informed on Monday.
In a written reply to the Lok Sabha, Chaudhary said that the CBDT committee tasked with simplifying ITR forms is holding extensive consultations with tax professionals, institutional bodies, and various field units of the Income Tax Department.
The Income Tax Act, 2025—passed on August 21—will come into force from April 1, 2026, marking the start of the next financial year. The new law will replace the Income Tax Act, 1961, with the aim of streamlining tax provisions, reducing the volume of legislative text, and making the framework easier for taxpayers to comprehend.
He added that all forms mandated under the Income Tax Act, including quarterly TDS returns and ITR forms, are currently being redesigned. The Directorate of Systems is collaborating with the tax policy division to ensure the forms become more user-friendly.
"ITR forms relating to Income Tax Act, 2025, will require the changes in consequence of amendments to the said Act made during Budget, 2026, and, accordingly, ITRs pertaining to the first tax-year 2026-27 shall be notified prior to FY 2027-28," Chaudhary stated.
On the ITR forms for income earned in the ongoing fiscal year (Assessment Year 2026–27), he said the process of consolidating and simplifying the forms is underway, and they will be notified under the current Income Tax Act, 1961.