CBDT chief urges income tax officials to gear up for new Income Tax Act from April 2026

CBDT Chairman Ravi Agrawal has asked Income Tax Department officials to remain prepared and proactive for the rollout of the new direct tax law, scheduled to come into force from April 1, 2026, stressing the need for clarity, readiness, and a focused approach during the transition.

In the communication accessed by PTI, Agrawal said the coming months would require active participation from officials in training and familiarisation programmes to understand the structure and intent of the new law, enabling them to guide taxpayers effectively. He added that curiosity and engagement among officers would play a key role in ensuring a seamless shift.

The chairman also pointed out that the department’s approach to tax administration is evolving, with an increasing focus on facilitation, trust and service alongside revenue collection and enforcement. He said technology will play a central role as systems align with the new tax framework, and familiarity with data platforms and automated processes will become essential, especially for younger officers who will lead the department in the future.

Reflecting on 2025, Agrawal said the department worked under close supervision to address grievances, rectify orders and clear pending appeals. Despite demanding timelines and high expectations, officials across the country demonstrated resilience and delivered results, he said, praising their dedication even when efforts went unnoticed.

He also noted that changing business models and transaction patterns have created new financial complexities, underscoring the need for continuous learning to enhance the department’s analytical capabilities. Agrawal urged officials to strengthen behavioural tax administration through the NUDGE framework, which promotes the use of data-driven communication to encourage voluntary compliance.

“These values are reflected in our everyday decisions. Each member contributes to the integrity of the tax system and supports the nation’s financial framework,” he said, calling upon officials to work together with diligence, clarity and purpose as 2026 unfolds.