The Union Ministry of Finance has confirmed that the new Income-Tax Return (ITR) forms—designed under the recently enacted Income-tax Act, 2025—are currently under formulation and will be notified before the first assessment year under the new regime, i.e., Assessment Year 2026-27. The clarification came in response to Unstarred Question No. 1224 raised in the Lok Sabha on Monday.
The question, posed by MPs Shri Sudheer Gupta, Shri Chavan Ravindra Vasantrao, and Shri Dhairyasheel Sambhajirao Mane, sought details regarding the expected rollout of the new ITR forms, stakeholder consultations, simplification measures, and expected benefits for taxpayers.
Responding to the queries, Minister of State for Finance Shri Pankaj Chaudhary outlined the status and roadmap for the overhaul of India’s income-tax return filing framework.
Income-tax Act, 2025 Enacted; Effective From FY 2026-27
The Minister informed the House that the Income-tax Act, 2025 was enacted on 21 August 2025, replacing the six-decade-old Income-tax Act, 1961.
The new legislation will come into force from tax year 2026-27, marking a major transition to a simplified tax architecture.
He clarified that rules and forms associated with the new Act—including ITR forms—are currently under drafting and will be notified in accordance with the new law.
Consolidation and Simplification of ITR Forms Underway
The Government highlighted that simplification of ITR forms is a major component of the new tax framework. Consolidated ITR forms required for Assessment Year 2026-27 are being finalized to align with the provisions of the Income-tax Act, 1961 for the limited transition period, while also accommodating amendments introduced through the 2025 Act.
Further, any ITR changes necessitated due to amendments announced in the Union Budget 2026 will be integrated before notification.
The Government confirmed that the first set of ITR forms for FY 2026-27 will be notified prior to the start of the financial year 2027-28, enabling taxpayers to familiarize themselves with the simplified structure.
CBDT Committee Conducting Wide Stakeholder Consultations
Addressing questions about consultations, the Minister stated that a dedicated committee formed by the Central Board of Direct Taxes (CBDT) is currently working on the simplification of income-tax returns.
The committee is engaging in:
- Consultations with tax experts
- Inputs from institutional bodies and industry associations
- Feedback from field formations of the Income-tax Department
The outcome of these consultations will be incorporated into the new ITR forms to ensure ease of compliance and a user-friendly design.
Focus on Reducing Taxpayer Compliance Burden
As part of the Government’s broader tax reform agenda, the redesigned ITR forms aim to:
- Reduce the complexity traditionally associated with tax return filing
- Minimize data redundancies
- Integrate pre-filled return mechanisms
- Improve digital interface and taxpayer services
Officials believe the simplified framework under the 2025 Act will lead to seamless filing, transparent assessments, and reduced litigation.
Taxpayer Benefits Expected From 2026-27
The Government assured that once implemented, the new ITR ecosystem will:
- Offer a more streamlined filing process
- Align all return forms with the simplified tax structure
- Enhance predictability and reduce procedural hurdles
- Improve overall taxpayer experience through digital-first interfaces
The detailed structure of the forms will become public once the CBDT committee completes its consultation process.
