IT refunds: All pending income tax refunds are set to be released by next month. CBDT Chairman Ravi Agarwal mentioned that smaller refunds have already been processed, but some larger refunds are facing issues due to incorrect claims. He also noted that preparations are in motion to roll out the new Income Tax Bill by April next year, with forms and rules expected to be available by the end of this year or by January 2026.
Ravi Agarwal pointed out that the Income Tax Department has already handled some small refunds. However, there have been challenges with larger refunds, as many taxpayers submitted incorrect claims. Document mismatches have been identified in several cases, and additional or incorrect exemption claims have been made in numerous refunds. Because of these issues, the Income Tax Department has issued notices to taxpayers and requested clarifications. This process is nearing completion, and all cases should be resolved by next month.
Regarding the new Income Tax Bill, Ravi Agarwal stated that the government is on track to implement it by April 2026. The goal of the new bill is to simplify the country’s tax laws, remove complicated procedures, and make the rules more straightforward for taxpayers. He added that all new forms and rules will be released by the end of this year or in January.
New income tax forms to be taxpayer-friendly
Ravi Agarwal further mentioned in this discussion that the new income tax forms are being designed with the convenience of taxpayers in mind. This means the forms will be shorter and more straightforward. Unnecessary sections and complexities will be eliminated. The e-filing process will also be made simpler and quicker. The emphasis will be on creating forms that are easy for taxpayers to comprehend. Agarwal stated that after streamlining the new tax act, his next priority will be to ensure maximum convenience for taxpayers.