New ITR Forms Expected Soon Ahead of Revised Income Tax Law Rollout

Kokila Chokkanathan
The Indian Income Tax Department is preparing to notify new Income Tax Return (ITR) forms and related tax rules as part of the transition to the Income Tax Act, 2025, which is set to take effect from April 1, 2026. This is a major reform replacing the nearly six‑decade‑old Income Tax Act, 1961, and the updated forms are a key step to make tax compliance simpler and data-aligned with the new law.

📅 When Will the New ITR Forms Be Released?

  • Tax officials say the **new ITR forms and rules will be notified by the first week of March 2026 to prepare for the Income Tax Act becoming effective from 1 April 2026.
  • Draft versions of the rules and forms were already published for public consultation, with feedback being invited until 22 February 2026.
  • Official notification is expected shortly after feedback is incorporated.
This timeline gives taxpayers and professionals some time to prepare for the new return formats and reporting requirements.

🧾 What’s Changing in the ITR Forms?

Under the new framework:

🔹 Simplification & wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital Compliance

  • The ITR suite (ITR‑1 to ITR‑7) is being redata-aligned with the Income Tax Act, 2025, including clearer eligibility rules for each form.
  • There’s a stronger emphasis on digital‑first filing, meaning most taxpayers will need to file electronically, with exceptions (such as super senior citizens) in limited cases.
🔹 Existing Forms Still in Use for Now

  • For Assessment Year (AY) 2026‑27 — the return filed in 2026 for FY 2025‑26 — taxpayers will continue using the existing ITR forms under the old law.
  • The new ITR forms tied directly to the new tax regime will be applicable for returns in later years (likely FY 2026‑27 and beyond) after official notification.
🤔 Why This Matters for Taxpayers

📌 1. EASIER Tax Filing Ahead

The redesigned ITR forms are expected to be more automated and easier to use, with more information pre‑filled from third‑party sources (like TDS, interest income, etc.) to reduce filing errors. Experts say this is part of the government’s push to simplify compliance.

📌 2. Move to New Tax Regime Structure

The new forms and rules are being data-aligned with changes introduced in the Budget 2026 and the new tax law, which includes clarity on perquisite valuation, exemptions, and deductions.

📌 3. Transition Phase

Because the rollout of the Income Tax Act, 2025 and forms is staggered:

  • Taxpayers filing returns in mid‑2026 (for AY 2026‑27) will use the old forms initially.
  • The fully redesigned ITR suite will be notified in march 2026 and likely used in future assessment years.
🗂️ How to Prepare Ahead of New Forms

🔹 Stay Updated: watch for official announcements on the CBDT website or Income Tax Department portal.
🔹 Understand Draft Changes: review draft rules/forms available for stakeholder feedback to anticipate reporting changes.
🔹 Plan for Electronic Filing: The new rules lean heavily on digital compliance and pre‑filled data structures.

📌 In Summary

  • The Income Tax Department plans to notify new ITR forms and tax rules by early March 2026 in preparation for the Income Tax Act, 2025 rollout from April 1, 2026.
  • Draft forms have been opened for consultation, and officials will incorporate feedback before final notification.
  • Taxpayers filing returns for AY 2026‑27 will largely continue with existing forms, but the new, simpler forms will become effective thereafter.
 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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