Minister of State for Finance Pankaj Chaudhary on Monday, December 8, confirmed that the new income tax returns (ITR) form will be issued before the financial year 2027-28 under the latest Income Tax Act.
In a reply issued in the Lok Sabha, Chaudhary wrote: “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.”
The PM Narendra Modi-led Indian government rolled out the new Income Tax Act. Passed in the house on August 21, 2025, it will officially come into effect from April 1, 2026, replacing the six-decade-long 1961 Income Tax Act and its regulations.
It is in accordance with the amended act that the finance ministry will be issuing the newly devised Income Tax Return forms before the citizens file their tax details on the official portal in the FY 2027-28.
Why Has The Govt Changed The Income Tax Act?
The amended Income Tax Act of 2025 aims to simplify the complicated clauses in the old act. It will also reduce the unnecessary wordage in the law and make it more accessible and easier for individuals and business entities to comply with the tax regulations.
As part of the transformation, the ITR forms will also be simplified. According to Chaudhary, a CBDT committee is currently working on this aspect and will ensure a more convenient ITR form structure. Tax experts, industry bodies and field officers are being consulted by the committee to arrive at a clearer and more user-friendly design and format of the form. To match the revised framework as per the new law, all forms, including quarterly TDS returns and annual income tax returns, will be updated.
How About ITR Forms In 2026?
The Income Tax Return forms for the first tax year under the new act, i.e. 2026–27, will be inclusive of all the changes announced in the 2026 Budget by the government. These forms will be notified to all taxpayers before the financial year 2027-28.
But how about ITR forms to be filed in the coming 2026? Taxpayers should know they can continue to file returns for the ongoing financial year with forms as issued under the 1961 Income Tax Act.
