New Delhi, Aug 25: The Income Tax department is working on simplified I-T forms and aims to notify new rules by December-end to give effect to the new I-T Act, which will come into force from April 1 next year, a senior tax official said on Monday.
Talking to PTI, Central Board of Direct Taxes (CBDT) member (Legislation) RN Parbat also said the department will come out with a fresh set of FAQs on the new Income Tax Act and come out with SoPs and guidance notes.
President Droupadi Murmu, on August 21, gave her assent to the Income-tax Act, 2025, which will replace the archaic Income Tax Act, 1961. The law was passed by Parliament on August 12.
Explaning the next set of processes before the income tax department, Parbat said CBDT is already working on formulating new rules and educating taxpayers, as well as capacity building of its officers, so that they are in a position to understand and enforce the new Act.
CBDT started work on framing the rules on February 13, 2025 — the day the Income Tax Bill was introduced in Parliament.
The Board had constituted the ‘Rules and Forms’ committee under a Chief Commissioner rank officer.
The committee has identified redundancies, done public consultation and presented the draft rules to the Tax Policy & Legislation (TPL) division of the CBDT. Once examined by the CBDT, the draft rules will be sent to the Union Finance Minister for approval.
After vetting by the law department, the rules will be notified and laid before Parliament.
With regard to the changes in the tax forms, the CBDT member said all the different forms applicable under the Income Tax Act, like TDS quarterly return form, ITR forms, are being reworked, and the Directorate of Systems is working with the TPL division to roll them out. (PTI)
