The Income Tax Department has released the draft Income-tax Rules, 2026, linked to the upcoming Income Tax Act, 2025.
Taxpayers and stakeholders have been invited to share their feedback by February 22.
These rules are expected to come into effect from April 1, 2026, along with the new tax law.
The draft rules focus on making tax compliance simpler, reducing confusion, and improving the overall return-filing experience for both individuals and businesses.
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Why New Income-tax Rules Are Being Introduced
The new Income Tax Act is meant to replace the old Income Tax Act of 1961.
The goal is not to change tax rates but to modernize the system and make it easier to understand.
According to officials, complex and outdated provisions have been removed.
The rules have been reorganized so taxpayers can calculate and file their taxes with less effort and fewer errors.
Key Changes Proposed in the Draft Rules
One of the biggest highlights is the redesign of income-tax return forms.
These new forms aim to be more user-friendly and easier to fill.
The draft also includes clearer rules for calculating holding periods of capital assets.
It provides detailed guidelines for finding the fair market value of assets like property and jewellery
In addition, new digital tools are being introduced to help taxpayers choose the right forms and complete their filings smoothly.
Public Feedback and Consultation
Before finalizing the rules, the Income Tax Department has opened them up for public consultation.
Taxpayers, professionals, and industry groups can send their suggestions and comments.
This step is meant to ensure that the final rules are practical, clear, and easy to use when they are implemented.
What Taxpayers Should Expect
If these rules are implemented as planned, filing income tax returns could become simpler and more transparent.
Clear definitions and streamlined forms are expected to reduce confusion and compliance burden.
However, tax slabs and rates are likely to remain the same.
The main focus of this reform is better structure, clarity, and ease of compliance rather than changes in taxation levels.