NEW DELHI: The tax department is set to notify the new rules and updated return forms under the Income Tax Act, 2025 by the first week of March.

However, several changes—especially those relating to data sharing and third-party reporting—will come into effect only in subsequent years, senior officials said.

While the new tax framework will come into force from April 1, 2026, income tax returns for assessment year 2026-27 will continue to be filed using the existing forms prescribed under the Income Tax Act, 1961.

The draft I-T Rules and Forms, 2026 have been released and the department has invited comments from stakeholders.

“By February 22, we will receive the responses. In parallel, we will work on them for about a week, and then take another week to incorporate the required changes. By the first week of March, we expect to notify the rules,” an official said.

On technological preparedness, officials said there will be an interplay between the 1961 Act and the new provisions for some time. “The forms will continue to be editable and largely pre-filled,” they added. At present, around 12 crore individuals pay taxes but only 9 crore file returns.

The story is reported by Pushpita Dey of The New Indian Express