New ITR Forms to Be Released Early for FY 2025-26: What Taxpayers Should Know

The Income Tax Department has announced that the new Income Tax Return (ITR) forms and rules will be released by January 2026. These forms will be used for the money you earn in the financial year 2025-26 (which will be assessed in 2026-27).

Income tax Department is planning to make these forms much easier and simpler to understand. By releasing them early, the department wants to make sure that taxpayers, tax consultants, and even software companies get enough time to understand the changes and adjust to the new system comfortably, without any last-minute rush.

Why are the new ITR forms being released early?

The Income Tax Department is releasing the ITR forms earlier than before so that everyone gets enough time to prepare. In previous years, the forms came late, which caused many problems, such as taxpayers not having sufficient time to understand the changes, tax professionals getting overloaded with work, and software companies struggling to update their systems. Because of this, errors like AIS/TIS mismatches were found late, and the government had to extend deadlines many times. Delays in releasing the forms also slowed down return processing and refund payments.

By releasing the forms early, the government wants to avoid all these issues and make the filing process smooth for everyone.

Features of New Upcoming ITR Forms

The final forms are not live till now but as per government statements and current policy directions, the following improvements are expected:

1. Simpler and Shorter Forms

• Less typing and fewer details to fill by hand
• Fewer extra attachments
• Clear sections so people know exactly what to fill
• Instructions written in simple, easy English

2. More Information Filled Automatically

• Your income details from AIS/TIS
• Tax deducted shown in Form 26AS
• GST details for business owners
• Capital gains data from your broker

3. Smart Forms Based on Taxpayer Type

Different forms for different kinds of taxpayers, such as:

• Salaried people
• Small business owners
• Professionals
• Senior citizens
• People who earn through capital gains
• Companies, LLPs, trusts, etc.

4. Better Technology and Fewer Mistakes

• Instant alerts if something doesn’t match
• Automatic checking before you file
• No repeated or duplicate entries
• Better connection with e-verification and refund systems for faster processing.

People who pay taxes, accountants, and companies that make tax software now have plenty of time to get ready before the new forms become compulsory on April 1, 2026. This extra time will help reduce mistakes, avoid mismatches, and make the filing process much smoother.