ITR TDS- Big relief for taxpayers. Often employed people have to file ITR just to get TDS refund, even if their income does not fall under the tax bracket. But now the government is planning to simplify it. Preparations are underway to include this initiative in the new Income Tax Bill-2025.
What does the committee’s recommendation say?
According to a report, the select committee believes that even after TDS deduction, if a person’s income is less than the taxable threshold, filing ITR becomes unnecessary and hassle. Therefore, it has been suggested that the taxpayer can get the refund by just filling a simple claim form based on Form 26AS .
Now just fill this form instead of ITR
This provision of the bill will be removed and a simple form will be made available for filling. This form will be prepared on the basis of TDS data appearing in Form 26AS. CBDT is soon designing this form, which will speed up the process and eliminate the need to file ITR.
The biggest relief for small earners
Under the new tax system, if your annual salary is up to Rs 12.75 lakh, and you have submitted the necessary tax documents, then you do not have to pay tax. But sometimes it happens that the company providing the job deducts TDS if the documents are not received. In such a situation, people have to file ITR for refund, now this hassle is going to end.
Data access and rights
The panel has also given suggestions regarding digital data. The new bill will clarify that IT officials can access taxpayers’ devices, ledgers, expense-income records. This step will help in making tax administration more transparent. This new rule is likely to come into effect from April 1, 2026, as the bill will be passed in Parliament after the budget session of 2025–26. The bill will take a new shape after the task force, which has given 285 suggestions.