Revamping India's Tax Framework: New I-T Rules on the Horizon

The Income Tax Department of India is finalizing simplified forms and new rules for the forthcoming Income Tax Act, 2025, set to replace the 1961 Act. This update aims to streamline processes, eliminate redundancies, and enhance taxpayer understanding. Notification of these changes is expected by December 2025.

The Income Tax Department is working diligently to introduce simplified I-T forms and new rules by December-end, to coincide with the new I-T Act's enforcement from April 1 next year, a senior tax official has reported.

Central Board of Direct Taxes (CBDT) member RN Parbat mentioned that the department plans to release a fresh FAQ set on the new Income Tax Act alongside SoPs and guidance notes as part of their compliance strategy.

Following President Droupadi Murmu's assent to the Income-tax Act, 2025, which replaces the 1961 Act, the CBDT has been reworking tax forms and rules, aiming to enhance simplicity and taxpayer comprehension.