Income Tax Refund Update: All pending income tax refunds will be released by next month, CBDT Chief Ravi Agarwal announced. He stated that small and low-value refunds have already been released. Agarwal explained that when high-value refund files were opened, incorrect claims were discovered in several cases. He stated, "Some refunds were incorrectly claimed. We have sent emails to taxpayers seeking clarification. Those who wish to make corrections should do so quickly."

Refunds May Be Released Soon
He stated that the department is analyzing each refund. As refunds are brought into the green channel, they are being released. According to the CBDT Chief, "All refunds will be released this month or next." Taxpayers are advised to update the information requested in the email promptly to avoid delays in the refund process.

ITR and Tax Rules Going to Change
Central Board of Direct Taxes Chief Ravi Agrawal also spoke about the Income Tax Act 2025. He said that the Income Tax Department will notify simplified Income Tax Return (ITR) forms and new rules by January. These rules will be implemented under the Income Tax Act, 2025, which will come into effect from April 1, 2026, the next financial year.

After launching the Taxpayer Lounge at the India International Trade Fair (IITF), he said, "We are designing the forms and rules. We are trying to release them by January so that taxpayers can adjust their systems in time." He emphasized that the department's goal is to keep the return forms simple to make it easier for people to file their returns under the new law.

What will change in the new law?
The Income Tax Act, 2025, was passed by Parliament on August 12. All forms, including quarterly TDS returns and ITR forms, are being redesigned. The Directorate of Systems and the Tax Policy Division are working together to make the forms more taxpayer-friendly.

What else won't change?
No new tax rates have been added to the new law. The language has simply been simplified to make the old, complex 1961 tax laws easier to understand.

Key points of the new law:
The 819 sections of the old 1961 Act have been reduced to 536. 47 chapters have been reduced to 23. The legal language has been reduced from 5.12 lakh words to 2.6 lakh words. 39 new tables and 40 new formulas have been added to enhance clarity.

Number of sections: Reduced from 819 to 536
Chapters: Reduced from 47 to 23
Total legal language words: Reduced from 5.12 lakh to 2.6 lakh

The new law claims to make the tax system lighter, simpler, and more understandable from the coming financial year.

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