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ITRs for AY 2026-27 will use current forms under the Income Tax Act, 1961, despite the new Income Tax law from April 1, 2026, as per Moneycontrol. Major changes start from 2027.
The implementation of the Income Tax Act 2025 will be gradual, with no immediate impact on return filing for the next assessment cycle.
Income tax returns (ITRs) for the assessment year (AY) 2026-27 will continue to be filed using the existing return forms prescribed under the Income Tax Act, 1961, even as the new Income Tax law is set to come into force from April 1, 2026, according to a Moneycontrol report citing sources in the Central Board of Direct Taxes (CBDT).
“The returns to be filed in the upcoming assessment year will be governed by the existing rules and forms. There is no change for taxpayers in terms of return forms for AY 2026-27,” a CBDT source was quoted as saying by Moneycontrol.
While the new Income Tax law will legally come into effect from April 1, 2026, its implementation will be gradual, with no immediate impact on return filing for the next assessment cycle.
“The objective is to gradually bring more taxpayers into the filing net without easier compliance,” the source said, according to the report.
While around 9 crore income tax returns are currently filed every year, estimates suggest that nearly 12 crore individuals are paying taxes through various channels, indicating a significant gap between tax payment and return filing.
Major reporting changes from 2027
According to the report, officials indicated that substantive changes under the new Income Tax framework, particularly those related to data sharing and third-party reporting, will come into effect only in later years.
“The information-sharing architecture under the new law will start operating from 2027,” a CBDT source said, according to the report.
As part of this phased implementation, crypto exchanges and other financial intermediaries are expected to begin furnishing detailed transaction data to the tax department in line with the provisions of the new Income Tax Act, starting from the financial year 2027 onwards, the source added.
What this means for taxpayers
For now, taxpayers can expect no change in return forms, filing procedures or compliance requirements for AY 2026-27. The more far-reaching changes under the new Income Tax law, especially those involving enhanced reporting and data integration, will be rolled out gradually over the next few years.
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February 09, 2026, 17:11 IST
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