New Income Tax Act 2025: When Will the New ITR Forms Arrive and What Will Change? Full Details Inside

The rollout of the Income Tax Act 2025 has raised an important question among taxpayers — when will the new Income Tax Return (ITR) forms be introduced, and what major changes can they expect? The Ministry of Finance has now clarified the timeline, confirming that the redesigned ITR forms will be notified before FY 2027–28, once provisions from Budget 2026 are incorporated.

The new forms will be essential for filing returns for FY 2026–27, marking a major transition from the old system under the Income Tax Act, 1961.

Government Confirms the Timeline in Lok Sabha

On 8 December 2025, Minister of State for Finance Pankaj Chaudhary provided a written response in Lok Sabha addressing the expected schedule for the rollout. He stated that:

• The updated ITR forms aligned with the Income Tax Act 2025 will be developed based on amendments introduced through Budget 2026.

• These forms, designed for Tax Year 2026–27, will be formally notified before FY 2027–28.

This announcement offers clarity to millions of taxpayers preparing for the shift to the new tax regime.

No Change in ITR Forms for FY 2025–26

The government has confirmed that returns for FY 2025–26 will continue to be filed using the existing ITR forms, based on the Income Tax Act, 1961.
Simplification and consolidation of ITR forms for Assessment Year 2026–27 is already underway, but these forms will still follow the rules of the old Act.

In short:

• Current financial year returns will not use the new ITR structure.

• Changes will take effect only once the Income Tax Act 2025 is fully operational.

When Will the New Law Take Effect?

The Income Tax Act 2025 will officially come into force on 1 April 2026.
From this date onward, the tax system will adopt a simplified structure — replacing terms like “previous year” and “assessment year” with a single term: Tax Year.

Important Transition Details

• Tax Year 2026–27 will be the first year under the new system, covering the period from 1 April 2026 to 31 March 2027.

• Taxpayers will need new ITR forms specifically designed for this tax year.

Key Points Taxpayers Should Know

Here are the essential takeaways for individuals and businesses preparing for the transition:

1. Filing for FY 2025–26

Your return for FY 2025–26 will still be filed under the 1961 Act, using forms that will be issued separately.

2. New ITR Forms for FY 2026–27

The redesigned forms — aligned with the Income Tax Act 2025 — will be released before April 2027.

3. New Tax System From 2026–27

Since the new tax regime begins with FY 2026–27, all return forms will also be updated to reflect the revised legal framework.

Old Act to Be Replaced by a Modern Framework

The Income Tax Act 2025 was officially notified on 21 August 2025, with the objective of replacing the six-decade-old Income Tax Act, 1961.
Once the new law becomes fully functional, fresh rules, procedures and forms will be issued to support a smoother and more transparent tax process.

The government emphasised that the drafting of rules and return forms is already in progress and will be completed in phases before the law is implemented.

Simplified ITR Forms on the Way

A dedicated committee formed by the Central Board of Direct Taxes (CBDT) is currently working to redesign the ITR forms.
The committee is holding extensive consultations with:

• Tax professionals

• Industry bodies

• Income Tax Department officials

The goal is to create simpler, user-friendly, and more intuitive return forms, ensuring taxpayers can file with greater ease under the new legal structure.

According to the Finance Ministry, the outcome of this exercise will become visible once the new set of ITR forms is introduced over the coming years.