The Central Board of Direct Taxes (CBDT) has unveiled the draft income tax (IT) rules under the Income Tax Act, 2025, which is scheduled to take effect from April 1, 2026. In line with the simplified provisions of the Act, the rules aim at ease of compliance, returns filing and overall processes.

“As part of a wider consultative process, the Central Board of Direct Taxes (CBDT) invites inputs and suggestions from stakeholders in the following four categories: simplification of language, reduction of litigation, reduction of compliance burden, identification of redundant/obsolete rules and forms,” said a release from the ministry of finance.

Also read: Budget 2026: Direct tax proposals retain focus on growth, compliance, and ease for taxpayers

It may be noted that budget 2025-26 had announced complete overhaul of the Income Tax Act, 1961, post which the bill was tabled in the parliament and passed in August. 

Expert say the new forms take forward the government's thrust towards tax simplification. 

“The draft Income Tax Rules 2026 signal a clear shift towards simplification and certainty for taxpayers. For the common man, measures such as expanded use of pre-filled returns, clearer reporting thresholds, and faceless assessments can reduce errors and unnecessary personal interface with the tax department," said Riaz Thingna, Partner, Grant Thornton Bharat. 

"For corporates, sharper rule-making and rationalised reporting requirements can help lower interpretational disputes, allowing businesses to focus more on growth rather than prolonged litigation," Thingna added. 

“The Income-tax Act, 2025 received the assent of the President in August 2025. The Act will come into effect from 1st April 2026. Before final notification of the Income Tax Rules and Forms, to encourage wider stakeholder participation, the proposed Income Tax Rules and Forms have been uploaded on the official website: www.incometaxindia.gov.in,” said a release from the ministry of finance.  

“The corresponding Income-tax Rules and related Forms have been prepared after broad-based consultation to align with the provisions of the Income-tax Act, 2025. Stakeholders are encouraged to study the same and make suggestions, which will be compiled and considered for review before final notification,” the ministry said.

Also read: Direct tax collections rise 7% to ₹12.9 lakh crore in November 2025

The Income Tax Act 2025 halves the number of chapters to 23 compared with 47 in the Income Tax Act, 1961. 819 sections have been trimmed to 536. That said the number of table and formulaes have gone up 18 and six to 57 and 36.

“To facilitate this, a utility has been launched on the e-filing portal, which can be accessed through the following link:

https://eportal.incometax.gov.in/iec/foservices/#/pre-login/ita-comprehensive-review. The above link is live and accessible to all stakeholders from 04.02.2026 on the e-filing portal,” the ministry said.

“All suggestions should clearly specify the relevant provision of the proposed Income-tax Rules or the proposed Form no (including the specific rule, sub-rule, or form number) to which the recommendation pertains under the aforementioned four categories,” it added.