Overview
- In a written reply to the Lok Sabha on December 8, MoS Finance Pankaj Chaudhary said ITRs for the first tax year under the new law (2026–27) will be notified before FY28 to reflect Budget 2026 amendments, with notification planned well ahead of that deadline to aid adaptation.
- The Income Tax Act, 2025 comes into force on April 1, 2026, replacing the 1961 statute.
- A CBDT committee is simplifying return formats through consultations with tax experts, institutional bodies and field formations.
- All applicable forms, including quarterly TDS statements, are being reworked by the Directorate of Systems in coordination with the tax policy division to improve usability.
- For income earned in the current fiscal (AY 2026–27), consolidated and simplified ITRs will be issued under the existing 1961 Act and notified accordingly.