Income Tax Filing New Rules: Big news has emerged for millions of taxpayers in the country. Starting next year, the process of filing income tax returns (ITR) will change significantly. The government has clarified that new ITR forms and new rules will be issued by January 2026. These forms will be fully compliant with the new Income Tax Act, 2025, which will come into effect on April 1, 2026.
This means that you will be filing your ITR for income from FY 2025-26 using a completely new method. Many old features will be removed, both the forms and the system will be simplified, and some rules may become stricter. These changes are significant for the general public, so it’s crucial to understand them.
Why are new rules being introduced?
CBDT Chairman Ravi Agarwal stated that the government’s primary objective is to make tax filing simple, clean, and user-friendly. The new forms will be easy for even the average person to understand. To this end, lengthy legalese, outdated rules, and complex sections have been largely eliminated. The new law replaces the 60-year-old Income Tax Act, 1961, making the entire system modern and digital.
How will the new law be easier?
The new Income Tax Act, 2025, reduces the number of sections from 819 to 536, and reduces the number of chapters from 47 to 23. This means the entire system will now be shorter, simpler, and easier to understand. The government claims this will reduce errors and the number of notices.
What will the new ITR forms be like?
New forms are being designed and will be released by January. According to the CBDT, the forms will use simple language, clear tables, and step-by-step guides to make filing returns much easier. The department wants to give people enough time to update the system and understand the changes.
More focus on new tax regime
In the new ITR form, the government will focus more on the new tax regime. This means that the new regime will be the default. The exemptions and deductions of the old regime will still be readily available, but the overall design will be designed to gradually encourage people to shift to the new regime. According to experts, these changes are being made to reduce taxpayer hassles and simplify the system.