The Income Tax Department has issued draft rules for the New Income Tax Act, 2025, set to take effect from April 1, 2026. The draft Income-tax Rules, 2026 simplify compliance, reduce litigation, and streamline procedures. Stakeholders can submit feedback until February 22, 2026, ahead of the law’s implementation.
India’s biggest direct-tax overhaul is underway as the Income Tax Department released draft rules for the New Income Tax Act, 2025. These rules, known as the Income-tax Rules, 2026, provide the procedural framework for valuation norms, filing formats, and compliance mechanisms. The Central Board of Direct Taxes (CBDT) has placed the draft rules and forms in the public domain, inviting feedback until February 22, 2026.
The new framework emphasizes simplification, reducing redundancies, and making compliance more technology-driven. Compared to the existing 1962 rules, the draft consolidates regulations—cutting down from 511 rules and 399 forms to 333 rules and 190 forms. This marks a significant step toward modernizing India’s tax administration.
Key Highlights
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Draft Income-tax Rules, 2026 released for stakeholder consultation
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Implementation aligned with Income Tax Act, 2025, effective April 1, 2026
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Public feedback open until February 22, 2026
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Rules streamlined from 511 to 333, forms reduced from 399 to 190
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Aim to simplify compliance, reduce litigation, and modernize tax processes
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Draft rules emphasize participatory law-making and transparency
Conclusion
The release of draft rules signals India’s commitment to a simpler, more efficient tax regime. By inviting public feedback, the government ensures inclusivity in shaping the country’s direct-tax framework, preparing taxpayers and professionals for a smooth transition.
Sources: Business Standard, The Hindu, Economic Times, CBDT Press Note