Government Confirms Timeline for New ITR Forms Under Income Tax Act 2025

On Friday, December 8, 2025, the Minister of State for Finance, Pankaj Chaudhary, confirmed that the new income tax return (ITR) form will be issued before the financial year 2027-28 under the latest Income Tax Act.

He wrote a reply issued in the Lok Sabha, “Committee formulated by the CBDT on simplification of Income Tax Returns is carrying out extensive consultations with tax experts, institutional bodies, and field formations of the Income Tax Department.”

Prime Minister Narendra Modi launched the new Income Tax Act, passed in the house on August 21, 2025. This new Act will replace the old Income Tax Act and its regulations. The New Income Tax Act will come into effect from April 1, 2026.

The Finance Ministry will issue the Income Tax Return before the citizens file their tax details on the portal in the Financial year 2027-28.

What’s New in the Income Tax Act?

The amended Income Tax Act of 2025 is being created to make tax rules much easier to understand and follow. The goal is to remove confusing language from the old law so that both individuals and businesses can file taxes without difficulty. As part of this change, the government will also simplify the Income Tax Return (ITR) forms.

A committee from the CBDT is already working on designing these new, simpler forms, as per Pankaj Chaudhary. They are taking suggestions from many tax experts, industry groups, and tax officers to make the forms more user-friendly and simple.

Are there any changes expected in ITR forms for 2026?

The new Income Tax Act and all the changes announced in the 2026 Budget will start applying from the tax year 2026-27. The government will release the updated income-tax return (ITR) forms before the financial year 2027-28 begins.

For returns to be filed in 2026 for the ongoing financial year, taxpayers can continue to use the existing ITR forms issued under the Income Tax Act, 1961, with no changes.