CBDT to Unveil Simplified Tax Forms and Rules Under New Income Tax Act

Under the new Income Tax Act, 2025 the Income Tax Department is planning for simplified tax forms and new rules. which will come into force from April 2026.

Central Board of Direct Taxes (CBDT) member RN Parbat said the department will also release new FAQs, along with standard operating procedures (SOPs) and guidance notes on the Income Tax Act. He explained that the department is working on changes to make sure taxpayers find the system easier to use.

He also added that the new will be simpler, old and redundant provisions will be removed, and new dorms will be introduced.

After Parliament passed the new Income Tax Act on August 12. President Droupadi Murmu gave her agreement to the new Income Tax Act on August 21. This new law substitutes the old Income Tax Act, 1961.

According to a CBDT member, the CBDT began creating the rules on February 13, 2025, the day the bill was proposed in Parliament. A committee under a Chief Commissioner has already reviewed existing rules, held public consultations, and created a draft for the Tax Policy and Legislation (TPL) division. And once it is cleared by CBDT, the draft will be sent to the Finance Minister and later examined by the law ministry before being placed in Parliament.

The new tax forms will include several requirements, such as income tax returns (ITRs) and TDS filings. These are being modified in collaboration with the Directorate of Systems with a focus on making them more user-friendly.

These new reforms will be simple and aim at improving the ease of doing business.