Big Changes Ahead: Government to Introduce New ITR Forms and Tax Law in 2026

The government is planning a big change to the income tax system. Starting April 1, 2026, all the current income tax return (ITR) forms, ITR 1 to ITR 7, will not be valid. After March 31, 2026, these old forms cannot be used anymore.

The Central Board of Direct Taxes (CBDT) will introduce new ITR forms and new rules in January 2026. People will get three months (January to March 2026) to understand and learn how to use the new forms before they become compulsory in April.

A new law called the Income Tax Act 2025 will also start from April 1, 2026. This law will replace the old Income Tax Act 1961, which will continue to be valid only until March 31, 2026. The shift to the new law and new forms will happen together in the next financial year.

Parliament has already approved the new law. It is just waiting to be fully put into action along with the new forms and rules.

Understand New Forms

The new income-tax forms that the government will introduce in 2026 will be redesigned to be much simpler and easier to understand. The idea is to make tax filing less confusing for the average person.

The new forms will aim on clear instructions, fewer complications, and a more user-friendly layout so that even people who are not very familiar with tax procedures can file their returns without confusion.

And it’s not just the ITR forms that will change. The government is also planning to restructure quarterly TDS return forms.

How Is the Income Tax Department Preparing for the New System?

• The Income Tax Department is upgrading its computer systems and digital platforms so that everything will work without any glitches.
• Officers and staff are being trained on how to handle the new rules, the new forms, and the updated procedures. This training is important to make sure they can assist taxpayers correctly and avoid confusion.
• All the work related to redesigning the forms and improving the systems is already in progress.
• The main purpose of all these upgrades is to make sure the problems and glitches that happened during the earlier portal change do not happen again.