Income Tax Act 2025: Simplified Return Forms Coming in 2026

The government is gearing up for a major change in the way we file our taxes. By January 2026, the new simplified return forms under the Income Tax Act, 2025 will be released, giving taxpayers a few months to prepare before they officially come into effect on April 1, 2026.

This marks the end of the six-decade-old Income Tax Act, 1961, and the beginning of a new era aimed at making tax compliance smoother and less burdensome.

Key Highlights

• Simplified Forms: The new return forms are designed to be straightforward, so taxpayers can file with minimal difficulty.
• Improved Compliance: The Central Board of Direct Taxes (CBDT) wants to cut down on unnecessary complexity and procedural hurdles.
• Refund Status: Smaller refunds are already being processed, while larger claims are under review. Legitimate payouts are expected by December 2025.
• Tax Collection Goals: The department is confident of hitting its ambitious ₹25.20 lakh crore direct tax collection target for FY26, backed by a healthy 6.99% growth in collections so far.

What’s Next?

Taxpayers should keep an eye out for the official notification of the new forms in January 2026. This advance notice gives individuals and businesses time to adjust their systems, processes, and practices before the new law takes effect.

The overarching goal is clear: make tax filing simpler, faster, and more transparent.

Final Thoughts

The transition to the Income Tax Act, 2025 is more than just a legal update—it’s a step toward modernizing India’s tax system. With simplified forms and a focus on compliance, taxpayers can expect a smoother experience starting April 2026.

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