India’s tax administration is preparing for one of the most significant shifts in personal and corporate tax compliance in decades. The government has confirmed that the New ITR Forms FY28, aligned with the freshly enacted Income Tax Act, 2025, will be notified before the 2027–28 financial year. This announcement was made by Minister of State for Finance Pankaj Chaudhary in response to a written query in the Lok Sabha on December 8.
The New ITR Forms FY28 move marks a major step toward simplifying income tax filing, reducing redundancies, and creating a cleaner, more user-friendly framework for taxpayers across the country.
A Modern Act to Replace a 60-Year-Old Law with New ITR Forms FY28
The Income Tax Act, 2025, enacted on August 21, has been designed to replace the long-standing Income Tax Act, 1961. While the old law has undergone thousands of amendments over the years, making it increasingly complex, the new act promises clarity, reduced wordage, and simplified interpretation.
Beginning April 1, 2026, the new act will officially come into force. Once implemented, it will form the basis for the new return mechanisms, including the New ITR Forms FY28, which will be structured to reflect the updated tax provisions, definitions, and compliance requirements.
Consultations to Simplify and Consolidate ITR Filing
A dedicated CBDT committee on ITR simplification is leading a comprehensive review of the current filing structure. This committee is consulting with:
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Tax experts
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Industry bodies
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Chartered accountant associations
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Technology teams from the Income Tax Department
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Field officers and compliance specialists
The goal is clear: make ITR filing easier, streamlined, and more intuitive for taxpayers.
The committee is evaluating all existing ITRs—from ITR-1 (Sahaj) to ITR-7 (Trusts)—with the aim to consolidate overlapping forms, minimize duplication of entries, and ensure that the new forms are compatible with automated systems used by the Directorate of Systems.
Why New ITR Forms Are Needed
The introduction of the New ITR Forms FY28 is not merely a procedural update. It is part of a broader shift in India’s tax administration architecture. Key reasons behind the overhaul include:
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Alignment with new definitions and income classifications under the Income Tax Act, 2025.
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Improving taxpayer experience with simplified formats and fewer fields.
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Enhancing digital compatibility, enabling faster processing and AI-based verification systems.
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Unified structure to reduce the need for multiple return types where possible.
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Integration with pre-filled data, which is expected to expand significantly from FY27 onwards.
Timeline and Notification Details
Responding to Parliament, clarification that the ITRs for the first tax year 2026–27—the first year governed by the new act—will be notified before FY 2027–28.
This means taxpayers will have ample time to understand, interpret, and prepare for the new system before filing begins.
For the current fiscal year (AY 2026–27), however, ITR forms will continue to be notified under the existing Income Tax Act, 1961, and the process of simplification and consolidation is already underway.
Taxpayer-Friendly Design in the Making
The Directorate of Systems is collaborating with the tax policy division to ensure the New ITR Forms FY28 are:
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Easy to read
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Digitally aligned
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SAFE for automated processing
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Supported by pre-filled data
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Standardized across taxpayer categories
These changes are expected to reduce the compliance burden, particularly for small taxpayers, professionals, and senior citizens.
The upcoming New ITR Forms FY28, built on the foundation of the Income Tax Act, 2025, represent an important modernization initiative for India’s tax ecosystem. By simplifying language, reducing complexities, and ensuring digital readiness, the government aims to deliver a more transparent, efficient, and user-friendly ITR filing experience for millions of taxpayers.
If executed effectively, these reforms will not only ease taxpayer compliance but also strengthen India’s journey toward a more modern, technology-driven tax administration.
File accurately to avoid penalties and processing delays. To learn more or get expert help, visit: 👉 Income Tax Return Filing
