New Income-tax Act, 2025 and Simplified ITR Forms

The Ministry of Finance confirmed that the Income-tax Act, 2025 (enacted August 21, 2025) will apply from FY 2026-27, replacing the 1961 Act. New simplified, consolidated ITR forms for AY 2026-27 are under preparation by a CBDT committee, incorporating Budget 2026 amendments. Consultations with tax experts, industry bodies, and field officers aim to reduce compliance burden and enhance user-friendliness. Forms will be notified before FY 2027-28.