End of an Era: India’s Tax Returns Get a New Look from April 2026

Transition to a new tax regime  
The government has confirmed that the Income Tax Act, 1961 will be replaced by the new Income Tax Act, 2025, effective April 1, 2026. As part of this transition, redesigned ITR forms and rules will be notified by January 2026, giving taxpayers three months to familiarize themselves before the new filing cycle begins. The move is intended to simplify processes, reduce complexity, and align India’s tax system with modern compliance standards. Taxpayers are advised to prepare for the transition by staying updated on the new formats and rules.  

Notable updates  
• Old ITR forms (ITR-1 to ITR-7) will be discontinued from April 1, 2026  
• New ITR forms and rules to be notified by January 2026  
• Transition aligns with the rollout of the Income Tax Act, 2025  
• Taxpayers will have three months (Jan–Mar 2026) to adapt to new forms  
• Aim: simplify compliance, improve transparency, and modernize tax administration  

Major takeaway  
The discontinuation of old ITR forms marks a historic shift in India’s tax framework, with the new Act and simplified forms expected to make filing more efficient and user-friendly for millions of taxpayers.  

Sources: CAclubindia, Economic Times, CNBC-TV18