All services on the income-tax e-filing portal -- both pre-login and post-login -- are expected to be updated by April 1 to reflect the new legal framework.
The income-tax (I-T) department will roll out the new Income-Tax Act, 2025 from April 1 with only 54 of the 190 Forms, required under the new law, operational initially to ensure a smooth transition.
The remaining forms will be introduced in phases during financial year 2026-2027 (FY27), according to the 30th report of the Standing Committee on Finance tabled in both the Houses of Parliament last week.
Key Points
- Income-Tax Act, 2025 will be implemented from April 1, with only 54 of 190 required forms initially operational.
- Remaining forms and system refinements will be introduced in phases during FY27 based on statutory timelines and requirements.
- Draft Income-tax Rules, 2026 have been released for public consultation and are expected to be notified before September deadline.
- Government has allocated around ₹1,200 crore for ICT upgrades to strengthen e-filing systems and backend infrastructure.
- Parliamentary panel has urged stress-testing of IT systems and nationwide outreach to manage increased taxpayer compliance demand.
Income-Tax Act 2025 Rollout
'Critical and time-sensitive requirements will be completed and made operational by March 31,' the Department of Revenue (DOR) said in its submission to the parliamentary panel chaired by Bhartruhari Mahtab.
'This pertains to 54 Forms (out of 190 Forms)... Remaining modifications and refinements will be implemented in subsequent phases in FY27 depending upon the relevant statutory timeline.'
Only 54 Forms Operational
The department has already released the draft Income-Tax Rules, 2026 for public comments on February 7, and indicated that the rules are likely to be notified by March, well before the statutory deadline of September 30.
Draft Rules 2026 Released
The DOR has earmarked Rs 1,200 crore in the FY27 Budget for ICT (information and communication technology) upgrades to support the e-filing portal, Income Tax Business Application (ITBA), Insight 2.0, and other platforms.
The transition to the new law will also require significant technological changes.
The Directorate of Income-tax (Systems) said the implementation involves development of new Forms and filing utilities, changes in backend validation systems, rule engines and computational logic, and integration with departmental and external IT (information technology) platforms.
All services on the income-tax e-filing portal -- both pre-login and post-login -- are expected to be updated by April 1 to reflect the new legal framework.
To ensure continuity in ongoing cases, the DOR said proceedings relating to tax years prior to April 1, 2026 will continue under the Income-Tax Act, 1961, while tax years beginning after that date will fall under the new law.
E-Filing Portal Overhaul
The parliamentary panel has called for 'rigorous stress and load-testing' of all IT systems in advance to handle the expected surge in returns.
It has also recommended a massive nationwide outreach campaign, utilising the Rs 27 crore allocated for multimedia content in 12 languages, including 36 mega physical events targeted at salaried taxpayers and small businesses.
Feature Presentation: Ashish Narsale/Rediff
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