Fresh forms, rules and FAQs for new I-T Act to come out soon: CBDT Chairman

New Delhi (PTI): The CBDT would soon notify the required forms and rules, apart from a voluminous FAQ, before the implementation of the new Income Tax Act, 2025, from April 1, a top government officer said on Wednesday.

Speaking to PTI during a post-Budget interview, CBDT Chairman Ravi Agrawal said the proposals made for direct taxes by finance minister Nirmala Sitharaman on February 1 were a "continuum" of the exercise of "simplifying" the tax law and making it easier for the taxpayer.

"We will be issuing the new income tax forms and rules within February...they will be opened for stakeholder consultation too before the new Income Tax Act of 2025 gets implemented from April 1, 2026," Agrawal said.

He added that the Central Board of Direct Taxes (CBDT) was also "working on" preparing a set of frequently asked questions (FAQs) and a presentation on the new law, which will be available to the public as the regime goes into transition.

Anticipating a huge rush of queries and issues during the first quarter (April-June) of the rollout of the Act, Agrawal said these presentations and FAQs will come in handy for both the taxpayer and the taxman (I-T officials).

Talking about the Budget 2026-27, the CBDT chief said the direct tax-related proposals announced should not be seen in "isolation".

"It should be seen as a continuum of this simplification exercise that is going on since July 2024, when the honourable FM (Sitharaman) had announced that we are going to have a comprehensive review of the Income Tax Act," he said.

Last year, Agrawal said, we were simplifying the language (of the I-T Act) so the focus was only on simplification of the language and presentation of the new law in a manner that the taxpayer is comfortable reading it.

It was also the idea that through that process, we minimize scope for multiple interpretations, which indirectly also addresses the litigation component, he added.

"Therefore, we had not ventured into changing the processes at that point in time. But throughout, we had said that at some point in time, we will also look at the processes in a manner that the clarity of thought is further taken forward.

"Therefore, a step two in that direction (was taken in the latest Budget) before we roll the new Act from 1st of April 2026, where we bring some sort of structural changes in the provisions...," he said.

He said the Budget announcement on decriminalisation of certain prosecution provisions in the I-T Act and immunity from levy of penalty is aimed to have a better tax administration apart from providing better services to the taxpayers, minimizing litigation, reducing the cost and time of the taxpayer while complying .

"The provisions in this budget, in this light, you would find are aimed to connect with the taxpayer," the CBDT chairman said.

He said the changes in the I-T Act of 1961 were made in this Budget in order to provide continuity with the forthcoming law.

Agrawal explained that some of the proceedings would be actually initiated post April 1, 2026 (implementation of the new law), but they would relate to the 1961 Act.