Income Tax Act 2025 / The government is bringing new Income Tax rules, will be notified by December, taxpayers will get this gift

Income Tax Act 2025: The Government of India is moving rapidly towards bringing a new and simple tax system for taxpayers. The Income Tax Department is preparing to implement the new Income Tax Act, 2025, which will replace the old Income Tax Act of 1961. This new Act will come into force from 1 April 2026. Central Board of Direct Taxes (CBDT) Member (Legislative) R.N. Parbat said that the target is to notify the new rules by December 2025. Along with this, work is also going on to make tax forms more user-friendly.

Features of the new law

The new Income Tax Act, 2025, will completely replace the old law. President Draupadi Murmu approved this Act on 21 August 2025, and the bill was passed in Parliament on 12 August 2025. The Income Tax Department started work on preparing the new rules and forms from February 13, 2025. For this, a special "Rules and Forms Committee" has been formed, which is reviewing the old rules and working on simplifying them. A draft has been prepared based on the suggestions received from the public, which has now been sent to the Tax Policy and Legislation (TPL) Division of the CBDT for review.

Timeline and process

The process of finalizing the new rules is going on fast. The CBDT will review the draft, after which it will be sent to the Finance Minister. Then there will be statutory testing by the Law Ministry. Finally, the rules will be introduced in Parliament and notified by December 2025. This will ensure that the new law can come into force from April 1, 2026.

Simple and user-friendly tax forms

The Income Tax Department is redesigning all existing tax forms, such as ITR and TDS return forms. The new forms are being designed in such a way that the process of filing tax is easy and smooth. CBDT member R.N. Parbat said, "Our goal is not only to simplify the law, but also to make the process so smooth for taxpayers that they face minimum hassle." This will not only benefit the common taxpayers, but will also promote 'ease of doing business'.

What will be new for taxpayers?

• Simple language: The new rules will be in easy and understandable language, so that taxpayers do not have to grapple with complex terminology.
• End of non-essential provisions: Old and complex provisions will be removed.
• Use of technology: The tax process will be made digital and technology-based, which will save time.
• Helpful resources: FAQs, SOPs (standard operating procedures), and guidance notes will be issued to help taxpayers.

Why is this change necessary?

The government believes that making the tax system simple and transparent will not only increase the confidence of taxpayers but will also improve tax compliance. The new rules and forms will reduce the burden for taxpayers and make the process of doing business easier. This step is also important in making India more competitive globally.