When will the new Income Tax Act 2025 come into effect in India?

The Income Tax Act, 2025, will come into effect from April 1, 2026.

What is the purpose of the Income Tax Act 2025?

The Act aims to simplify tax laws and reduce wordage, making them easier to understand.

When can taxpayers expect the new ITR form under the 2025 Act?

The new income tax returns form will be released before the 2027-28 financial year.

Home / Business and Economy / New Tax Laws Incoming: ITR Form for 2027-28 Revealed Soon

New Tax Laws Incoming: ITR Form for 2027-28 Revealed Soon

8 Dec, 2025

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Summary

A new Income Tax Act, 2025, will replace the 1961 act starting April 1, 2026.
The simplified tax law aims to make tax regulations easier to understand.
The new income tax returns form will be released before the 2027-28 financial year.

New Tax Laws Incoming: ITR Form for 2027-28 Revealed Soon

India is preparing for a significant overhaul of its tax system with the upcoming Income Tax Act, 2025. This new legislation, enacted on August 21, is scheduled to take effect from the next financial year, beginning April 1, 2026. It is designed to replace the long-standing Income Tax Act of 1961, with a primary objective of simplifying tax laws.

The simplification efforts are being spearheaded by a committee formed by the Central Board of Direct Taxes (CBDT). This committee has been actively engaged in broad consultations with various stakeholders, including tax experts, institutional bodies, and officials from the Income Tax Department. The goal is to reduce the complexity and verbosity within tax legislation, making it more accessible.