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The Central Board of Direct Taxes (CBDT) will notify the new Income Tax Rules, 2025 along with simplified forms by December 2025.
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These rules will be issued under the Income-tax Act, 2025, which will come into effect from April 1, 2026.
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The goal is to simplify compliance with plain language forms, reduced duplication, and digital-friendly formats. FAQs, SOPs, and guidance notes will also be released.
What’s Changing?
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New Rules and Forms (by December 2025):
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Completely redesigned ITR, TDS/TCS, and other forms.
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Use of simple language with removal of redundant disclosures.
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FAQs, SOPs, and detailed guidance will accompany the new forms for taxpayer ease.
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Timeline of the New Law:
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The Income-tax Act, 2025 has already received Presidential assent in August 2025.
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It will be effective from April 1, 2026 (FY 2026-27 / AY 2027-28).
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Focus on Ease of Filing:
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Compared to the 1961 Act, the new law is shorter, clearer, and easier to navigate.
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More reliance on digital integration — pre-filled data, automated validations, and system-based assistance.
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Impact on Different Taxpayers
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Salaried Individuals: Fewer schedules and simplified disclosures.
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Small Businesses & Professionals: Easier reporting for presumptive taxation.
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TDS/TCS Deductors: Updated utilities with clearer compliance rules.
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General Taxpayers: No new taxes or additional burdens — the focus is simplification, not fresh levies.
Key Dates
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December 2025: Notification of Income Tax Rules 2025 and release of new forms + FAQs/SOPs/Guidance Notes.
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April 1, 2026: Income-tax Act, 2025 comes into force. New forms and rules fully operational.
FAQs
Q1. Will tax slabs automatically change under the new law?
No. The new Act focuses on structure and language simplification. Tax rates and slabs will still be revised only through the Finance Bill.
Q2. What happens for filings before April 2026?
The existing 1961 Act framework will continue until March 31, 2026. From April 2026 onward, the new Act will apply.
Q3. Will there be public consultation?
Yes, draft forms are expected to be released in December 2025 for feedback before final notification.
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