New Income Tax Act: CBDT working on new forms and regulations, to issue supplementary FAQs and guidance notes

With the new Income Tax Act set to come into effect from April 1, 2026, the Central Board of Direct Taxes is working on it smooth roll out and all systems will be in place well before time to ensure its easy implementation.

In an interview with Business Today, RN Parbat, Member (Legislation) CBDT said that the department will soon issue supplementary FAQs as well as guidance notes on the new Act.

"We had issued comprehensive FAQs at the time of the introduction of the Bill. Now, we will also be coming out with supplementary FAQs and guidance notes," he said.

The CBDT had also set up a committee on rules and forms on February 13, 2025 at the time of the introduction of the Bill, he further said, adding that the committee has also made the new rules and redesigned the formas, which are now under examination by the TPL division of the department.

"Once we finalise it and obtain the approval of the finance minister and concurrence of the law ministry, we will notify it and take it before Parliament, " Parbat said.

It is expected that the process will be completed by the end of the year.

Meanwhile, the department is also working on its IT system, which has to be ready before the new Act comes inot effect.

"The systems directorate is working in tandem with the drafting committee and the TPL team, and they are also going through the new forms," he said.

On changes in the return and refund procedure due to the new Act, Parbat said that there will be no impact on income tax refunds.

Income tax returns for the current financial year, which will be filed next year in FY27 will also not be impacted as they will be based on the Income Tax Act, 1961.

The new Act will come into effect from FY27 and from FY28, the department will come out with new income tax return forms that will be filed vy by assessees based on the new Income Tax Act.

The effort of the department would be to keep the forms simple, lucid and easy to understand withe the aim of maximising the ease of doing business, he underlined.

The Income-tax Act, 2025 received the President’s assent on August 21, 2025 after being passed by Parliament in the monsoon session.