India to Introduce Simplified Income Tax Act 2025 with New ITR Forms by April 1, 2026

Overview

India's Income Tax Department is preparing for the new Income Tax Act 2025, effective April 1, 2026. The department will release newly designed, simplified Income Tax Return (ITR) forms and related rules by January 2026. These changes aim to make tax filing more digital, easier, and clearer, with the new tax regime set to be the default option. Key updates include simpler language, improved data matching with AIS/TIS/GST, separate capital gains reporting, and an increased limit for asset and liability disclosures.