ITR Filing 2025: No More Hassle Of Filing ITR, Just Fill This Form To Claim TDS Refund

Key Highlights: 

– Simple form to replace ITR for those below taxable limit.

– Refund form auto-filled from TDS data.

– Part of new Income Tax Bill 2025.

New Delhi: Salaried individuals often need to file an Income Tax Return (ITR) just to claim a refund of Tax Deducted at Source (TDS), even if their income is below the taxable limit. The government is now planning to simplify this process. The upcoming Income Tax Bill 2025 includes provisions for this initiative.

What Does the Committee Recommend?

According to a report by Hindustan Times, the select committee believes that filing an ITR just to claim a TDS refund is unnecessary and burdensome for individuals with income below the taxable threshold. The panel has recommended that taxpayers should be able to claim refunds by filling a simple form based on their Form 26AS.

A Simple Form Will Replace ITR Filing

Instead of filing a full ITR, a new, easy-to-fill form will be introduced. This form will automatically pull TDS data from Form 26AS. The Central Board of Direct Taxes (CBDT) is in the process of designing this new form, aimed at speeding up the process and removing the need to file a complete return.

Major Relief for Low-Income Earners

Under the new tax regime, individuals with an annual salary up to ₹12.75 lakh and with proper tax documentation are not required to pay any tax. However, companies often deduct TDS in the absence of submitted documents. In such cases, individuals are currently forced to file ITRs just to claim refunds. This burden is expected to be lifted soon.

Access to Digital Data and Transparency

The committee has also made recommendations on data access. The new bill will clarify that income tax officers can access taxpayer’s digital devices, records, and income-expenditure data to ensure transparency in tax administration.

This rule is likely to come into effect from April 1, 2026, after the Income Tax Bill is passed in the 2025-26 budget session of Parliament.

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