Will the new tax law simplify filing? Centre seeks public suggestions

New Delhi: The Centre has invited inputs from stakeholders on the proposed Income-tax Rules and Forms under the Income-tax Act, 2025, which is set to come into effect from April 1, 2026, the Finance Ministry said on Sunday.

To encourage wider participation, the draft Income-tax Rules and Forms have been uploaded on the official website ahead of final notification. The Central Board of Direct Taxes (CBDT) said the rules and forms were prepared after broad-based consultations to align with the new legislation.

“Stakeholders are encouraged to study the proposed rules and forms and submit their suggestions, which will be compiled and reviewed before final notification,” the CBDT said.

Inputs are being invited in four key areas:

• Simplification of language
• Reduction of litigation
• Reduction of compliance burden
• Identification of redundant or obsolete rules and forms

Stakeholders can submit suggestions by providing their name and mobile number, followed by OTP-based verification. Submissions must clearly mention the relevant rule, sub-rule or form number to which the recommendation applies.

Finance Minister Nirmala Sitharaman said on Budget Day that the Income-tax Act, 2025, would replace the 1961 Act and that tax forms have been redesigned to make compliance easier for ordinary citizens, enhancing ease of living and ease of doing business.

The new framework includes exemptions on insurance interest awards, nil deduction certificates for small taxpayers, and an extension of the ITR filing deadline for non-audit cases to August 31.

The government had announced a comprehensive review of the Income-tax Act in July 2024, which has now culminated in the new legislation set for implementation in April 2026.

IANS