Overview
- Only 54 of the 190 forms required under the new law will be operational at launch, with the remainder phased in during FY27 per the Department of Revenue.
- Returns for FY2025–26 (AY 2026–27) will be filed under the Income-Tax Act, 1961, and the new Act will apply to income earned from FY2026–27 onward.
- The CBDT has notified the Income Tax Rules, 2026, revising allowances and perquisites with higher HRA thresholds, increased education and hostel allowances, stricter documentation, and a shift to the term “tax year.”
- About ₹1,200 crore has been earmarked for ICT upgrades to the e-filing portal and backend systems, which are expected to reflect the new legal framework by April 1.
- The parliamentary finance panel has urged rigorous IT stress-testing and a nationwide outreach push, including ₹27 crore for multimedia content and 36 large taxpayer events.