The Income Tax Department has released the draft Income-tax Rules, 2026, linked to the upcoming Income Tax Act, 2025.
Taxpayers, professionals, and industry bodies have been invited to share their feedback by February 22.
These new rules are expected to come into effect from April 1, 2026, along with the new income tax law.
The main goal is to make tax compliance simpler and filing returns easier for everyone.
Why New Income Tax Rules Are Being Introduced
The new Income Tax Act is set to replace the Income Tax Act of 1961, which has been in use for decades.
According to the government, the focus of this reform is not on changing tax rates but on improving clarity and ease of compliance.
Officials say the new framework removes outdated provisions and reorganizes rules to make tax calculations easier to understand for individuals and businesses.
Key Changes Proposed in Draft Rules 2026
The draft rules include several important updates aimed at simplifying the tax process.
Income-tax return forms have been redesigned to make them more user-friendly.
Clear rules have been proposed for deciding how long an asset must be held before it is taxed as capital gains.
New guidelines explain how to calculate the fair market value of assets such as jewellery and property.
Digital tools will help taxpayers choose the correct form and file returns more smoothly.
These changes are part of a larger plan to modernize India’s tax system and encourage voluntary compliance.
Public Feedback and Consultation Process
Before finalizing the rules, the Income Tax Department is seeking suggestions from taxpayers and experts.
This step is meant to ensure the new system works well in real-life situations and remains easy to use.
The feedback received will be reviewed before the rules are officially notified.
What This Means for Taxpayers
If implemented as planned, the new rules could make income-tax filing simpler and more transparent.
Streamlined forms and clearer definitions may reduce confusion and errors during filing.
However, tax slabs and rates are expected to remain the same, as the reform focuses mainly on structure, clarity, and compliance rather than taxation levels.
