CBDT Chairman Ravi Agrawal has announced that a new simplified tax regime is on the horizon, aiming to replace the six-decade-old Income Tax Act of 1961 and make compliance easier for taxpayers.
Simplified Forms and Rules
The government will release simplified Income Tax Return forms and rules by January 2026, helping taxpayers better understand their obligations and reduce errors in filing.
Effective Date and Transition
The new rules will officially come into force on 1 April, giving individuals and businesses ample time to prepare their systems, advisors, and documentation.
Replacing the 1961 Income Tax Act
This reform marks the replacement of the Income Tax Act of 1961, focusing on simpler forms, clearer provisions, and improved legal compliance across the board.
Revenue Targets on Track
The CBDT Chairman has also expressed confidence in meeting this financial year's tax collection targets, signalling that the tax administration is balancing simplification with strong revenue performance.