New Tax System: Now the hassle of filing ITR is over, you just have to fill this form for TDS refund

The government has proposed in the Income Tax Bill 2025 that now ITR filing can be replaced by a simple form for TDS refund, especially for those whose income is below the taxable bracket.

New Tax System: Often employed people have to file ITR just to get TDS refund, even if their income does not come under the tax bracket. But now the government is planning to simplify it. Preparations are underway to include this initiative in the new Income Tax Bill-2025.

What does the committee recommend?

According to the Hindustan Times report, the Select Committee believes that despite TDS deduction, if the person’s income is less than the taxable threshold, then filing ITR still becomes unnecessary and hassle. That is why it has been suggested that the taxpayer can get the refund by just filling a simple claim form on the basis of Form 26AS.

Now just fill this form instead of ITR

This provision of the bill will be removed and there will be a provision to fill an easy form. It will be prepared on the basis of TDS data appearing in Form 26AS. CBDT is designing this form soon, so that the process is faster and the need to fill ITR is eliminated.

Biggest relief for small earners

Under the new tax system, if your annual salary is up to ₹ 12.75 lakh, and you have submitted the necessary tax documents, then you do not have to pay tax.

But many times it happens that the company providing employment deducts TDS if the documents are not received. In such a situation, people have to file ITR for refund, now this hassle is going to end.

Data access and rights

The panel has also given suggestions regarding digital data. The new bill will clarify that IT officials can access the taxpayer’s device, ledger, expense-income records. This step will help in making tax administration more transparent.

This new rule is likely to come into effect from April 1, 2026, as this bill will be passed in Parliament after the budget session of 2025–26. The bill will take a new form after the task force, which has given 285 suggestions.

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