The Centre is preparing to introduce a new set of income-tax return (ITR) forms under the overhauled Income Tax Act, 2025. The Central Board of Direct Taxes aims to notify these forms by January 2026 so they can come into force from April 1. The shift marks a major break from the 1961 tax law and is intended to make filing easier and more intuitive for India’s rapidly growing pool of taxpayers.

CBDT Chairman Ravi Agrawal said the department is working on a cleaner, more intuitive set of forms designed to reduce ambiguity and streamline reporting procedures. He explained that notifying the forms by January would give companies, tax filers and intermediaries sufficient time to overhaul their systems.

“We are in the process of designing the new forms and rules, and our aim is to notify them by January so that taxpayers have adequate time to adjust their systems and processes,” Agrawal said at the inauguration of the Taxpayers’ Lounge at the India International Trade Fair (IITF) in New Delhi.

Why the overhaul was needed?

Officials and tax analysts said the current forms and rules rely heavily on traditional legal drafting, often making them difficult to interpret. The updated framework is expected to employ simplified language, clearer instructions and integrated examples, especially for valuation provisions and the revamped TDS structure under the new Act.

Sources familiar with the drafting process said the government wants the new forms to mirror the larger intent behind the Income Tax Act, 2025 – ease of compliance, transparency and a reduction in disputes.

The Taxpayers’ Lounge at IITF 2025 has been designed as an information and assistance hub providing help with PAN and e-PAN applications, Aadhaar–PAN linking, and PAN-related corrections. Visitors can also access guidance on e-filing, Form 26AS queries, TDS concerns, international taxation, faceless assessments, appeals and other digital-compliance issues.

Officials said the Lounge is part of a larger effort to improve taxpayer outreach as the department prepares for the transition to the new tax regime.

Agrawal also confirmed that pending income-tax refunds will be processed by December. He said several refund claims were flagged due to “incorrect deductions or mismatches”, leading to enhanced scrutiny. However, he added that the department expects to release the remaining refunds “this month or in December”.