CBDT Chairman Ravi Agrawal has said that the government will notify the new income tax return forms and rules under the simplified Income Tax Act, 2025, by January 2026, giving taxpayers sufficient preparation time before the law comes into effect on April 1,. Speaking at the inauguration of a taxpayers’ lounge at the India International Trade Fair, Agrawal said the department intends to keep the new forms “simple” to make compliance easier as the 1961 Act is phased out. He also reiterated that the budgeted direct tax collection for the current financial year would be achieved, according to an ET report.Agrawal acknowledged the delay in refund issuances, attributing it to high-value transactions flagged by the system and to cases where discrepancies have been detected. “We have written to taxpayers to file a revised return in case there is a discrepancy,” he said, adding that refunds are being scrutinised before release.The CBDT chairman said tax collection is expected to pick up in the coming weeks. “The collection is expected to bounce by December and there is no reason to believe that targets will not be met. Hopefully by December 10, income tax collection should increase,” he said.The direct tax target for 2025-26 stands at Rs 25.20 lakh crore. Net direct tax collection grew 6.99% year-on-year to more than Rs 12.92 lakh crore till November 10, while refunds during the same period fell 18% to around Rs 2.42 lakh crore.“We have analysed and found that some wrong refunds or deductions were being claimed, so there is scrutiny, but we hope to release the remaining refunds by this month or December,” Agrawal said.
