CBDT puts draft Income-tax Rules, forms out for feedback till Feb 22

Draft rules and forms placed in public domain for 15 days as part of preparatory work for implementation of Income-tax Act, 2025 from April 2026

The Central Board of Direct Taxes (CBDT) has placed the draft Income-tax Rules, 2026 and the accompanying forms in the public domain for stakeholder feedback, ahead of the implementation of the Income-tax Act, 2025 from April 1, 2026.

 

According to a note issued by the Department of Revenue, the draft rules and forms will remain open for public comments for 15 days, until February 22, 2026. The move is aimed at making the process of framing subordinate legislation “more participative and effective”.

 

Notably, the draft Income-tax Rules, 2026 propose a significant reduction in the volume of delegated legislation. While the existing Income-tax Rules, 1962 contain 511 rules and 399 forms, the draft rules include 333 rules and 190 forms, after consolidation and removal of redundancies.

 

The CBDT said the new rules have been drafted in line with the philosophy of the Income-tax Act, 2025, with an emphasis on simplified language, removal of redundancy, and the use of tables and formulae wherever required. While the broad policy content has been retained, changes have been introduced to align with the new Act.

 

The forms accompanying the draft rules have also been redesigned to reduce compliance burden, with standardisation of common information across forms. The tax department said the forms have been structured to enable automated reconciliation and pre-fill capabilities, making filing more intuitive and less prone to errors.

 

“These smart forms would considerably ease filing and enhance the user experience,” the note said, adding that the redesign would support centralised processing and data-driven decision-making.

 

The department also said rationalisation in the new rules is expected to improve ease of understanding and compliance for taxpayers and businesses. The simplification of forms, coupled with technology adoption, is expected to enhance overall ease of doing business.

 

The CBDT has also released two navigators — one mapping the old rules with the new draft rules, and another mapping the old forms with the new forms — to guide stakeholders. Feedback is proposed to be collected rule-wise and form-wise, the note said.

 

According to Sandeep Jhunjhunwala, partner at Nangia Global, “The decision to release the draft rules well in advance for public consultation reflects a commendable commitment to participatory governance. Equally noteworthy is the long-overdue rationalisation of archaic perquisite thresholds, such as tax-free at-work meal value and gifts received from an employer — a reform that has been widely sought and brings the income-tax framework closer in line with contemporary economic realities.”

 

“A marked difference also appears to have been made in the definition of ‘accountant’ for the purpose of various certifications under the new Income-tax Act, which now stands revised to individual professionals with not less than 10 years’ experience and annual receipts in the year preceding certification of more than Rs 50 lakh. In the case of partners in any entity engaged in rendering accountancy or valuation services, the annual receipts of the entity in the year preceding certification must exceed Rs 3 crore,” he added.