I-T Wing Told To Update e-filing Portal For Introduction of New Act
A new and simplified Income Tax Act, 2025, which will replace the over six-decade-old Income Tax Act of 1961, will come into effect from April 1
New Delhi: A Parliamentary panel on Thursday asked the Income Tax (I-T) department to undertake ‘rigorous stress and load testing’ of its e-filing portal and the entire IT backbone to ensure that there are no glitches when the new Act is rolled out from April 1. “The committee desires that the notification and publication of the income-tax rules and corresponding forms should be expedited, ensuring that adequate time is given to taxpayers and professionals to adapt,” the panel said.
The I-T department has informed the Standing Committee on Finance, chaired by BJP member Bhartruhari Mahtab, that out of the 190 forms to be notified under the new I-T Act, only 54 forms are expected to be ready by March 31, 2026. The remaining forms will be rolled out subsequently.
A new and simplified Income Tax Act, 2025, which will replace the over six-decade-old Income Tax Act of 1961, will come into effect from April 1. Considering the technical glitches faced on the e-filing portal in September 2025, the committee recommended that the entire IT backbone (including the e-filing portal, ITBA, and Insight 2.0 projects) undergo rigorous stress and load testing well in advance.
“It must also be ensured that the software is capable enough to handle the complex Legacy Data Integration (LDI) with the massive influx of new returns without glitches. This monumental transition requires meticulous preparatory work, the committee observed that the department is carrying out a large digital overhaul, with Rs 1,200 crore allocated for FY 2026-27 for ICT (Information and Communication Technology) projects to support a Unified Data Architecture under the new law,” the panel said.
The panel, however, emphasised that legislative simplification must be seamlessly matched by operational readiness at the ground level, including completion of training and capacity building for all officers in a time-bound manner. Besides, the panel also noted that there is a provision of Rs 27 crore for multimedia campaign and content creation in the FY 2026-27.
“The Committee would like to emphasise the need to immediately initiate mega outreach events, both physical and through media, on a widespread scale as this is absolutely essential to assist taxpayers in navigating the transition without facing undue compliance hardships, penal action for genuine transitional errors and difficulties in the faceless assessment mechanism,” it said.