The Income Tax Department is working on simplified I-T forms and expects to notify the new rules by the end of December, which sets the stage for the new Income-tax Act to start from April 1 next year, a senior functionary said Monday.
RN Parbat, Member (Legislation) of the Central Board of Direct Taxes (CBDT), told PTI that the department is also working on a new set of frequently asked questions (FAQs) along with standard operating procedure (SOPs), and guidance notes to enable stakeholders to adjust to the new framework.
The Income-tax Act, 2025 was assented to by President Droupadi Murmu on August 21. The legislation which was passed in parliament on August 12 will replace the six-decade-old Income Tax Act, 1961.
While talking about immediate priorities, Parbat said the CBDT is working on new rules, educating taxpayers and building capacity among its officers so that officers are able to effectively implement and enforce the law when the time comes.
"The principles being followed for reframing the rules are the same, which we have followed for the I-T Act. So, simplification of language will be there. The redundant rules and forms will be removed from the statute, and a fresh set of rules and forms will be applicable for the new Act," Parbat added.
The drafting process for the new rules commenced on February 13, 2025, when the Income Tax Bill was introduced in Parliament.
As part of the advancement, the CBDT constituted a 'Rules and Forms' committee with a Chief Commissioner level officer as a chairperson. The committee considered existing provisions, eliminated duplicative provisions, solicited comments from the public and submitted the draft rules to the Tax Policy & Legislation (TPL) division of the Board.
Upon conclusion of its review, the draft rules will be sent to the Union Finance Minister for approval, then the law department will review and separate the rules publication. Rules will then be officially notified and laid before Parliament.
"The new I-T Act is coming into effect from April 1, 2026. So, our rules and forms have to be ready so that we can give effect to the new Act. So, we will be preparing them right away. The rules will be ready by year-end, which is December 2025," the top official added.
In relation to altering tax forms, the member of the CBDT stated that all forms with respect to the Income Tax Act i.e. ITR forms and also the quarterly TDS return form are being redesigned. The Directorate of Systems will manage the roll-out, in conjunction with the Tax Policy & Legislation (TPL) division.
"Our Act has changed... So it will be a brand new form. In the form, we are following the same principle, that they should be simple enough so that the ease of doing business is more and more," Parbat added.
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