In a recent development, the CBDT Chief has said that simplified ITR forms under the new Income Tax Act will be rolled out in January 2025. The new income tax law is set to replace the six-decade-old Income Tax Act 1961.
The motive of the new Income Tax Act is to make tax compliance simpler and more taxpayer-friendly.
According to Ravi Agarwal, Chief, Central Board of Direct Taxes (CBDT), “The department is in the process of designing simplified forms and rules. We are working towards putting this in place so that the taxpayers have sufficient time to adapt their processes.” He was speaking at the inauguration of the Taxpayers’ lounge at the India International Trade Fair (IITF).
Simplified Forms for Taxpayers’ Convenience
As per the tax officials, quarterly TDS return forms and ITR forms are being simplified for taxpayers. The directorate of systems is coordinating with the policy department to ensure that the forms are clear and easy to use.
Once the rules are finalized, they will be laid before the parliament.
Also Read: ITR Refund Status is Still ‘Processing’? Top Reasons for Delay & Steps to Fix It
Changes in the New Income Tax Act
The new tax legislation does not introduce any new tax. It is being brought to simplify the structure and language. The Income Tax Act 2025 reduces redundant provisions and archaic terminology. Under the new law, sections have been reduced from 819 to 536. The number of chapters has been reduced from 47 to 23. Under the simplified law, the words have also been reduced from 5.12 lakh to 2.6 lakh.
The new law enhances clarity and understanding for the taxpayers. The new law will reduce confusion and streamline reporting processes. The new income tax act will be effective from April 1, 2026.
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