CBDT Unveils Simplified Income Tax Act 2025: When And What Taxpayers Need To Know About Key Changes

New Income Tax Act 2025: The New Rules You Need to Know About

The income tax system is set to change big! The new rules and regulations under the Income Tax Act 2025 are expected to take full shape by December 31, 2025, as the release of the new rules and regulations by the CBDT is delayed. This was informed by RN Parbat, a senior member of the CBDT, in a recent interview (as reported by Business Line).

Wondering what this implies for you? There is no cause for concern for the honest taxpayer since the government says otherwise. The objective of this is to create a simpler and easier-to-follow tax system.

The CBDT is also developing FAQs (Frequently Asked Questions) and SOPs (Standard Operating Procedures) to enable everyone to understand the changes. These guides will make the new rules very simple.

Therefore, if you are going to file income tax, watch out! A new system is arriving — and it is all about being clear, convenient, and just to everyone.

FAQs and SOPs In The Pipeline For New Income Tax Act

Worried about how you will know the changes in tax rules? Do not fret, everything will be okay. The CBDT Member Parbat informed that easy-to-follow FAQs (Frequently Asked Questions) and SOPs (Standard Operating Procedures) of the new Income Tax Act 2025 are on the way by the department. These manuals will clarify all in a simple way. Stating that the Finance Act 2025 and the Income Tax Bill had been similarly branded prior to its introduction, Parbat further asserted that there had been concerns raised with regard to the use of similar FAQs as well. Just like the earlier experience, firm instructions will be issued to inform taxpayers about the changes so that they can make the shifts without any difficulties.

Access To Digital Information And Changes In Return Filing Process With New Income Tax Act

Access to Digital Information and Data Privacy

• Parbat emphasized that honest taxpayers need not worry about digital privacy concerns.
• Provisions for accessing digital information already existed under the old Act and have only been reworded for clarity.
• These provisions apply only during search, seizure, or survey operations, which happen infrequently.
• The department will soon issue an SOP to handle digital data securely and transparently.

Changes in Return Filing Process

• No changes will occur in the current financial year.
• Returns for FY 2025-26 will be filed under the old Act.
• New provisions and return procedures will come into effect from FY 2026-27.

What Should Be Expected From The New Filing System

The Central Board of Direct Taxes (CBDT) is striving to make filing income tax returns easier for all. They aim to simplify the process by using clearer and simpler language in the forms. This will help taxpayers understand what is required without confusing them with jargon.

The new system will be more intelligent, in addition to using simpler words. The forms will contain data that has been automatically filled with information the government already has. This means taxpayers will not be asked to submit all the information again, thus saving time and reducing errors.

The CBDT is also in the process of standardizing all the forms by using consistent terms. That will make tax filing easier because taxpayers will not be confused by different terminologies in various forms.

RN Parbat of the CBDT said that the basic aim is to simplify the tax filing process and make it easy to understand and navigate. Staff in the Tax Policy and Legislation (TPL) team are making great efforts to deliver these improvements in the near future.

(With Inputs)

Also Read: New Income Tax Act 2025: Simplifying Tax Rules With Clear, Easy Language For Every Taxpayer