Government is bringing new Income Tax rules, notifications will be done by December, this gift will be available

By Cross Talk India Team Last updated Aug 25, 2025

Photo: Freepik All existing tax forms like ITR, TDS Return Forms etc. are being designed again.

Big news for taxpayers! The government is now going to give a completely new look to the Income Tax Act. The Income Tax Department is currently preparing simple and user-friendly tax forms and along with this, preparations have been intensified to notify the new rules by the end of December 2025. Central Board of Direct Taxes (CBDT) Member (Legislative) R.N. Parbat said that these new rules will be implemented under the Income Tax Act, 2025 to be implemented from 1 April 2026.

What will be special in change?

The Income Tax Act, 2025 will now be replaced by the old 1961 Income Tax Act. This new Act was approved by President Draupadi Murmu on 21 August 2025. The bill was passed on 12 August in Parliament. Work is going on on new rules and forms. The Income Tax Department started work on new rules and forms from 13 February 2025. A Rules & Forms Committee has been formed, working on review and improvement of old rules. A draft has been prepared by taking suggestions from the public, which has now been sent for review in the TPL division of CBDT.

What is timeline?

CBDT will review the draft. The draft will go to the Finance Minister. Then there will be a statutory test of the Law Ministry. After this, rules will be placed in Parliament and notified. The entire process is to be completed by December 2025.

Forms will be absolutely new and easy

All existing tax forms like ITR, TDS Return Forms etc. are being designed again. This will now make tax even more simple and easy. The government aims to promote Ease of Doing Business. CBDT member R.N. According to Parbat that we are not only simplifying the law, but is also working on making the tax filling process comfortable, so that the taxpayers are minimized.

What will happen for taxpayers?

New rules will be in simple language. Non-essential provisions will end. In addition, FAQS, SOPS and Guidance notes will be released. Also, technology will be maximum used.

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