CBDT chief urges tax officials to prepare for transition to new Income Tax Act

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CBDT Chairman Ravi Agrawal.

CBDT Chairman Ravi Agrawal. | Photo Credit: PTI

Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal has asked the Income Tax Department to beryllium acceptable and proactive for the modulation to the caller nonstop taxation law, which is scheduled to beryllium implemented from April 1, calling connected officials to enactment with clarity and purpose.

In his customary New Year connection to section staff, the CBDT main said caller rules, procedures and forms were being formulated to facilitate the transition. The CBDT is the administrative assemblage for the Income Tax Department.

The caller Income Tax Act volition regenerate the existing Income Tax Act of 1961, which has been successful unit for implicit six decades.

Describing 2026 arsenic a twelvemonth of “special significance” for the department, Mr. Agrawal urged officials to guarantee their “readiness, knowing of the instrumentality and shared assurance successful its implementation”.

“This twelvemonth carries peculiar significance. With the Income Tax Act 2025 notified and scheduled to instrumentality effect connected 1 April, 2026, we hole for the displacement to the Income Tax Act 2025. New rules, procedures and forms are nether formulation and grooming and capableness gathering are already underway,” Mr. Agrawal wrote successful his January 1 missive to officials.

PTI, which accessed the communication, reported that the CBDT main said the coming months would necessitate the “active engagement successful grooming and familiarisation truthful that we recognize the intent and operation of the caller instrumentality and are capable to usher taxation payers with clarity”.

“Your engagement and curiosity volition signifier however smoothly we marque transition,” helium said.

Mr. Agrawal added that the attack to taxation medication was “evolving”.

“Beyond postulation [of gross and taxes] and enforcement, the relation of the section is progressively centred connected facilitation, spot and service. Technology volition beryllium cardinal arsenic systems germinate to align with the caller framework,” helium said.

He said familiarity with information platforms and automated processes would go integral, peculiarly for younger officers and unit who would pb the section successful the coming years.

Reflecting connected 2025, the CBDT president said the organisation functioned with “close oversight” connected grievances, rectification of orders and pending appeals.

“Expectations were precocious and timelines demanding, yet colleagues crossed the state showed resilience and delivered,” helium said, lauding the “sincerity” of taxation officials adjacent erstwhile their efforts were “unseen”.

He added that changing concern and transaction patterns had brought caller “financial complexities” portion besides offering opportunities to physique sharper penetration and capability, underscoring the request for continuous learning.

Mr. Agrawal besides asked officials to fortify “behavioural” medication done the NUDGE framework, oregon Non-intrusive Usage of Data to Guide and Enable, to foster voluntary compliance done amended usage of data.

“These values unrecorded done our decisions, large oregon small...every subordinate strengthens the integrity of the taxation strategy and the enactment we bash each time softly supports the nation’s fiscal architecture,” helium wrote.

“As 2026 unfolds, whitethorn we enactment unneurotic with diligence, clarity, and purpose,” helium added.

Published - January 04, 2026 07:31 p.m. IST

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