The process of Income Tax Return (ITR) filing in India is about to undergo a major revamp. From April 1, 2026, the new Income-tax Act, 2025 will replace the existing 1961 Act. To align with this change, the Central Board of Direct Taxes (CBDT) will introduce redesigned ITR forms that are simpler, smarter and more transparent.
These new forms, expected to be notified by January 2026 will feature a cleaner layout, step-by-step guidance and improved auto-prefill integration with the Annual Information Statement (AIS) and Taxpayer Information Summary (TIS). This means most of your income and investment data will appear automatically — making filing faster and reducing errors.
The new tax regime will take center stage in these forms encouraging taxpayers to opt for the simplified structure with lower rates and fewer exemptions. Still, those preferring the old regime will also benefit from reduced disclosure requirements and a more organized design.
Another major update is the increase in the asset and liability disclosure limit — from Rs. 50 lakh to Rs. 1 crore. This change will reduce compliance hassle for millions of salaried and middle-class taxpayers.
Taxpayers reporting capital gains must note that transactions before and after July 23, 2024 will now need to be reported separately. This distinction ensures accurate tax computation under the new framework and smoother verification by the Income Tax Department.
Overall, these reforms mark a significant step toward a modern, digital and user-friendly tax filing system. For tax officers including Jurisdictional Assessing Officers (JAOs), the shift will mean less manual scrutiny and more data-driven verification. For taxpayers, it promises speed, accuracy and convenience.
About the Author
