Rules Under New I-T Act by December

The Income Tax department will notify the rules to give effect to the new Income Tax Act 2025 by December, and ready the relevant forms like TDS and TCS to enable the assessees to comply with the simplified Act from April 1 next year, Central Board of Direct Taxes (Legislation) member RN Parbat told FE.

- PRASANTA SAHU New Delhi, August 25

I-T returns, which are also simultaneously being readied, will be available for use in 2027-28 when returns are filed under the new Act for 2026-27, the first year of its implementation, he said.

In 2026-27, the I-T returns will be governed by the old I-T Act.

Parbat said the department will come out with a fresh set of FAQs on the new Act and issue standard operating procedures (SoPs) for handling privacy issues while accessing virtual data of assesses obtained from their electronic devices.

On August 21, President Droupadi Murmu gave her assent to the new Act, which will replace the archaic Income Tax Act, 1961.