Simplified ITR Forms as per New Income Tax Act 2025 to be notified before FY 2027-28

The Income Tax Return (ITR) forms belonging to the first tax year after introducing the new Income Tax Act 2025 will be notified before entering into the financial year 2027-28. The reason behind this is that the ITR forms for tax year 2026-27, as per the Income Tax Act, 2025, will include some changes as a result of the amendments introduced to the said act during the budget of 2026.

The government is currently working on updating and simplifying the ITR (Income Tax Return) forms. These new forms will be used for the Assessment Year 2026-27 and will be officially released according to the rules of the Income-tax Act, 1961.

The Ministry of Finance under the Government of India has recently answered the unstarred question no. 1224 raised in Lok Sabha (Lower House of Parliament) on Monday, December 08, 2025. The questions related to the new income tax return (ITR) forms for the upcoming tax year 2026-27, as per the new Income Tax Act 2025.

The following are the questions asked in the Lok Sabha:

“(a) Whether the Government proposes to release the new Income-Tax Return (ITR) forms and related rules under the simplified Income Tax Act, 2025, by January 2026;

(b) If so, the details thereof along with the salient features and objectives;

(c) Whether the government has consulted tax experts, industry bodies, and other stakeholders before finalizing the new rules and forms;

(d) If so, the details thereof and the response of the Government thereto;

(e) The steps taken/proposed to be taken by the Government to ensure that the simplified ITR forms are user-friendly and reduce the compliance burden on taxpayers; and

(f) The manner in which taxpayers benefit from the simplified ITR framework in terms of filing process, assessment mechanisms, and taxpayer services?”

These questions have been answered by Shri Pankaj Chaudhary, the Minister of State in the Ministry of Finance:

In answer to questions from (a) to (b), the state minister replied that the Ministry of Finance approved the new Income Tax Act 2025 on August 21, 2025, to replace the earlier Income Tax Act 1961. The new Income Tax Act 2025 is scheduled to take effect from the tax year 2026-27. Also, after the approval of the new said Act, the related rules and forms are now being prepared and will be officially issued soon.

The government is currently working on merging and simplifying the Income-tax Return (ITR) forms, which will apply from Assessment Year 2026-27 once they are officially notified under the Income-tax Act, 1961. Also, the ITR forms for the new Income-tax Act, 2025, will need updates based on the changes made in the 2026 budget. Therefore, the ITR forms for the first tax year, 2026-27, will be issued before the start of FY 2027-28.

In answer to questions from (c) to (f), the state minister replied that the Central Board of Direct Taxes (CBDT) has set up a committee to simplify the Income Tax Returns (ITRs). This process is being carried out through a deep consultation with tax experts, institutional bodies, and field formations of the Income Tax Department. The Income Tax Department is currently engaged in preparing the new ITR forms, and the final results of this work will be shown in the forms when they are officially released.