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

 

1.  Central Board of Direct Taxes (CBDT) Chairman Ravi Agrawal has asked the Income Tax Department to be ready and proactive for the transition to the new direct tax law, which is scheduled to be implemented from April 1, calling on officials to work with clarity and purpose.

2.  In his customary New Year communication to department staff, the CBDT chief said new rules, procedures and forms were being formulated to facilitate the transition. The CBDT is the administrative body for the Income Tax Department.

3.  The new Income Tax Act will replace the existing Income Tax Act of 1961, which has been in force for over six decades.

4.  Describing 2026 as a year of “special significance” for the department, Mr. Agrawal urged officials to ensure their “readiness, understanding of the law and shared confidence in its implementation”.

5.  “This year carries special significance. With the Income Tax Act 2025 notified and scheduled to take effect on 1 April, 2026, we prepare for the shift to the Income Tax Act 2025. New rules, procedures and forms are under formulation and training and capacity building are already underway,” Mr. Agrawal wrote in his January 1 letter to officials.

6.  He said familiarity with data platforms and automated processes would become integral, particularly for younger officers and staff who would lead the department in the coming years.

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

8.  Mr. Agrawal also asked officials to strengthen “behavioural” administration through the NUDGE framework, or Non-intrusive Usage of Data to Guide and Enable, to foster voluntary compliance through better use of data.