Only 54 forms ready as new Income-Tax Act rolls out from April 1
New Delhi, Mar 12, 2026
India will roll out the new Income-tax Act, 2025 from April 1 with 54 forms operational initially, while the rest will be introduced in phases during FY27
The Income-tax Department will roll out the new Income-tax Act, 2025 from April 1 with only 54 of the 190 forms required under the new law operational initially, while the remaining forms will be introduced in phases during FY27, according to the thirtieth report of the Standing Committee on Finance on the Demands for Grants (2026–27) of the Department of Revenue tabled in both Houses on Thursday.
"Critical and time-sensitive requirements will be completed and made operational by March 31. This pertains to 54 forms (out of 190 forms).... Remaining modifications and refinements will be implemented in subsequent phases in FY 2026–27 depending upon the relevant statutory timeline," the Department said in its submission to the Parliamentary panel chaired by Bhartruhari Mahtab.
The Department has already released the draft Income-tax Rules, 2026 for public comments on February 7, and indicated that the rules are likely to be notified by March 2026, well before the statutory deadline of September 30.
The Department has earmarked ₹1,200 crore in the 2026–27 Budget for ICT upgrades to support the e-filing portal, Income Tax Business Application (ITBA), Insight 2.0, and other platforms.
The transition to the new law will also require significant technological changes. The Directorate of Income-tax (Systems) said the implementation involves development of new forms and filing utilities, changes in backend validation systems, rule engines and computational logic, and integration with departmental and external IT platforms.
All services on the income-tax e-filing portal — both pre-login and post-login — are expected to be updated by April 1 to reflect the new legal framework.
To ensure continuity in ongoing cases, the Department said proceedings relating to tax years prior to April 1, 2026 will continue under the Income-tax Act, 1961, while tax years beginning after that date will fall under the new law.
The tax department’s internal system will allow officers to process cases under both statutes through a module-level option enabling selection of either the 1961 Act or the 2025 Act.
Separately, the Department said around 8,422 officers and personnel have been trained on the new law in the past four months, including 3,573 officers who have undergone detailed training programmes.
The government is also planning a nationwide awareness campaign to prepare taxpayers for the transition. Beginning in the second or third week of March, the Department will organise outreach events across the country and launch multimedia campaigns on television, radio, print and outdoor media.
The parliamentary panel has called for “rigorous stress and load-testing” of all IT systems in advance to handle the expected surge in returns. It has also recommended a massive nationwide outreach campaign starting mid-March, utilising the ₹270 million allocated for multimedia content in 12 languages, including 36 mega physical events targeted at salaried taxpayers and small businesses.
“The authorities should remain receptive to feedback received during the campaign and take timely corrective measures,” the report states, adding that no penal action should be taken for genuine transitional errors. The committee described the shift as a “monumental transition” aimed at simplifying compliance, reducing litigation, and making tax filing more taxpayer-friendly.
[The Business Standard]
