New Income Tax Law: CBDT works on new models and regulations, to issue additional common questions and guidance notes

With the start of the new income tax law starting from April 1, 2026, the Central Council for Direct Taxes works on that smooth and all systems will be in place before time to ensure their easy implementation.

In an interview with Business Today, RN Parbat, a CBDT member, said that the administration will soon issue complementary, in addition to the new law notes.

“We have issued comprehensive questions and answers at the time of the introduction of the bill. Now, we will also come out with the additional common questions and guidance notes,” he said.

CBDT also established a committee on rules and models on February 13, 2025 at the time of the entry of the bill, adding that the committee has also set the new rules and prepared the design of Formas, which is now examined by the TPL section in the administration.

“As soon as we finish it and get the approval of the Minister of Finance and the approval of the Ministry of Law, we will notify it and take it in front of Parliament,” Parbat said.

The process is expected to be completed by the end of the year.

Meanwhile, the department also works on its information technology system, which should be ready before the new law comes as an effect on the lack of an effect.

He said: “The Directorate of Systems is working alongside the drafting committee and the TPL team, and it is also going through new shapes.”

On the changes in returning and recovering funds due to the new law, Parbat said there will be no effect on income tax recovery.

The income tax decisions for the current fiscal year will not be affected, which will be submitted next year in the 27th fiscal year because it will be based on the income tax law, 1961.

This law will lead to the implementation of the 27th fiscal year and the 28th year, the administration will come with forms of approving the new income tax that will be presented by residents based on the new income tax law.

The management effort will be to maintain simple, clear and easy models to understand the goal of maximizing the ease of doing business.

The income tax law, 2025, received the President’s approval on August 21, 2025 after it was approved by Parliament in the seasonal wind session.