The simplified income tax framework set to take effect from April 1 is expected to allow salaried taxpayers with no additional sources of income to rely on pre-filled returns and file them directly, Central Board of Direct Taxes (CBDT) chairman Ravi Agrawal said on Monday, Hindustan Times reported.
Speaking about the recently enacted Income-Tax Act, 2025, Agrawal said the government has drafted new rules and return forms using simpler language to make compliance easier for taxpayers, the Hindustan Times noted.
He added that public comments and feedback have been invited and will be considered before the rules are finalised and notified, a process expected to be completed by the first week of March.
Explaining the rationale behind the redesigned rules and forms, Agrawal said the objective was to eliminate unnecessary complexity and focus on collecting accurate and relevant information. This approach would not only help the income tax department analyse data more effectively, but also improve ease of compliance for taxpayers, he said, according to the Hindustan Times. The changes are also expected to support the widening and deepening of the tax base.
Tax experts said earlier versions of pre-filled returns, introduced around 2019-20, still required taxpayers to deal with complicated ITR forms, manually enter details and cross-check multiple sections. An expert told the Hindustan Times that there is hope the new system will be significantly simpler, aided by the use of advanced technology.
Following presidential assent to the Income-Tax Act, 2025 in August, the CBDT prepared the corresponding rules and forms after extensive consultations, Agrawal said. The draft framework has now been opened for stakeholder feedback, which will be reviewed before the final notification is issued, the Hindustan Times reported. The new rules will replace the existing Income-Tax Rules, 1962.
While presenting the Union Budget for 2026-27 in Parliament on February 1, finance minister Nirmala Sitharaman recalled that a comprehensive review of the Income Tax Act, 1961 was announced in July 2024 and completed in record time. She said the new Income-Tax Act, 2025 will come into force from April 1, 2026, the Hindustan Times reported.
Sitharaman added that the simplified income tax rules and forms would be notified shortly, giving taxpayers adequate time to familiarise themselves with the changes. The redesigned forms, she said, are intended to ensure that ordinary citizens can comply with tax requirements without difficulty, the Hindustan Times noted.
