The brand new earnings tax return type has been considerably simplified for the comfort of taxpayers. Consultant picture |Picture courtesy: Getty Photographs/iStockphoto
The Tax Division on Saturday (February 7, 2026) launched draft guidelines and types beneath the brand new Revenue Tax Act, 2025, which suggest to simplify the provisions, scale back compliance burden, make it simpler to grasp and taxpayer-friendly.
The brand new and simplified Revenue Tax Act 2025 will come into pressure from April 1, changing the Revenue Tax Act 1961, which got here into pressure greater than 60 years in the past.
The Revenue Tax Division has invited feedback from stakeholders on the draft Revenue Tax Guidelines 2026 and types by February 22. Thereafter, the foundations and types beneath the brand new regulation will probably be notified.
The Revenue Tax Rules of 1962 embody 511 guidelines and 399 types. On account of the adjustments proposed within the new guidelines and types, resembling eradicating redundancies and merging guidelines wherever attainable, the draft Revenue Tax Guidelines 2026 will embody 333 guidelines and 190 types, the I-T division stated whereas in search of feedback from stakeholders.
The brand new earnings tax return type has been considerably simplified for the comfort of taxpayers. Widespread data is standardized throughout types with the goal of decreasing the compliance burden on taxpayers.
“Varieties are designed in a sensible approach, with auto-matching options and even pre-filling options, making submitting extra intuitive and fewer error-prone. These sensible types will make submitting a lot simpler and enhance the person expertise,” the report stated.
It added that the wording of the shape has additionally been simplified to keep away from operational, administrative or authorized ambiguities.
It’s hoped that the rationalizations made within the rules will simplify the provisions and make them simpler to grasp. The proposed simplification of procedures will assist make life simpler for all sections of taxpayers and ease operations on the whole, the tax division stated.
Along with the brand new draft guidelines and types, two navigators (one that gives a mapping between the outdated guidelines and the brand new draft guidelines, and one that gives a mapping between the outdated and new draft types) may also be made accessible to stakeholders and the general public.
Sandeep Jhunjhunwala, international associate at Nangia, stated that of be aware is the rationalization of long-overdue outdated preferential standards, such because the tax-free quantity of meals at work and presents acquired from employers. It is a extensively requested reform that brings the earnings tax framework nearer to trendy financial realities.
“Taken collectively, these measures exhibit a considerate and forward-looking method to legislative implementation,” he stated.
Jhunjhunwala additional stated that there seems to be a notable distinction within the definition of accountant for numerous {qualifications} beneath the brand new Revenue Tax Act, which has now been revised to be an unbiased skilled with 10 years or extra of expertise and an annual earnings of Rs 5 million or extra within the 12 months earlier than qualification.
For companions, if the entity offering accounting providers or valuation providers has an annual earnings of greater than Rs 300,000 within the 12 months previous certification.
Grant Thornton Bharat LLP associate Tax Richa Sawhney stated specializing in know-how that ensures type pre-filling and matching will scale back time spent on compliance and scale back inadvertent errors.
