The Central Board of Direct Taxes (CBDT) is planning to notify the new income tax return (ITR) forms and accompanying rules under the upcoming Income Tax Act, 2025, by January next year. 

The move is aimed at giving taxpayers sufficient time to familiarise themselves with the new compliance framework before it comes into force on April 1, 2026.

CBDT chairman Ravi Agrawal said that the forthcoming ITR forms will be designed to ensure ease of compliance and align with the simplified structure of the new law, which replaces the 1961 Income Tax Act that has been in place for over six decades. He was speaking at the inauguration of the Taxpayers’ Lounge at the India International Trade Fair.

Agrawal reiterated that the government is confident of meeting its direct tax collection target for the ongoing financial year, despite concerns over sluggish growth in November. He also acknowledged delays in issuing refunds, attributing them to system-triggered alerts over high-value or suspicious transactions.

“We have written to taxpayers asking them to file revised returns where discrepancies have been detected,” he said. “Collections are expected to pick up by December, and there is no indication that we will fall short of the budgeted target.”

The direct tax collection target for FY25 stands at ₹25.20 lakh crore. As of November 10, net direct tax collections had risen 6.99% year-on-year to ₹12.92 lakh crore, while refunds dropped 18% to ₹2.42 lakh crore.

Agrawal said the department had identified incorrect refund or deduction claims, which led to additional scrutiny. “We expect to clear pending refunds by late November or December,” he said, expressing confidence that the balance collections will rebound within the next few weeks.

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