New ITR Forms for Income Tax Act, 2025 Coming by FY 2027-28

• New ITR forms, based on the Income Tax Act, 2025, will be announced before the start of FY 2027-28.
• The Income Tax Act, 2025, will replace the 1961 Act from April 1, 2026, aiming to simplify the tax system.
• The Central Board of Direct Taxes (CBDT) is leading the redesign of ITR forms, consulting experts and stakeholders.
• All tax forms, including TDS returns, are being redeveloped for clarity and ease of compliance.
• The current financial year (2025-26) will continue to operate under the existing 1961 Income Tax Act.

Why It Matters: New Income Tax Act 2025 simplifies tax compliance and forms for taxpayers.