The Central Board of Direct Taxes (CBDT) will roll out only 54 of the 190 forms required under the new Income-tax Act, 2025 when the law comes into effect on April 1.
This update was shared by officials from the Department of Revenue (DoR) with the Parliamentary Standing Committee on Finance.
According to the department, the forms that are essential and time-sensitive will be ready by the deadline, while the rest will be introduced in later phases after further updates and refinements.
Officials said the remaining forms will be gradually modified and released in line with the legal timelines under the new tax law.
Panel Urges Faster Release of Rules and Forms
The parliamentary panel, led by Bhartruhari Mahtab, has asked the government to speed up the notification of the Income-tax Rules, 2026 along with all the required forms.
The committee believes taxpayers and tax professionals need enough time to understand the new system and prepare for the changes before the law fully comes into force.
The new tax law aims to simplify existing provisions, reduce complexity, and introduce more modern digital processes.
However, the panel stressed that simplifying the law must also be matched with proper systems and infrastructure to support it.
Major Digital Upgrade Underway
The government is also working on a large digital transformation of the tax system.
For this, Rs 1,200 crore has been allocated in FY 2026–27 for technology projects that will support a Unified Data Architecture under the new tax framework.
The committee also referred to technical problems that occurred on the Income Tax e-Filing Portal in September 2025.
To avoid similar issues in the future, it recommended extensive stress and load testing of all major systems before the new law is implemented.
These systems include the Income Tax Business Application (ITBA) and Insight 2.0, which are key digital platforms used by the tax department.
Focus on Data Integration and Taxpayer Awareness
Another major concern highlighted by the panel is Legacy Data Integration (LDI).
The committee stressed that older data must be properly integrated with new systems to ensure the tax department can handle the large volume of returns without disruptions.
At the same time, the panel asked the government to complete training and capacity-building programs for tax officials so that the new system can be implemented smoothly across the country.
To help taxpayers adapt to the new law, the government has set aside Rs 27 crore in FY 2026–27 for public awareness campaigns.
These will include multimedia content and outreach programs designed to educate taxpayers about the changes.
The committee also suggested launching large awareness drives through both physical events and media campaigns.
The goal is to help taxpayers understand the new system, avoid compliance mistakes during the transition, and get clarity on the faceless assessment mechanism.
Finally, the panel advised authorities to actively listen to feedback from taxpayers and professionals during these outreach programs and quickly address any issues that arise.
