Overview
- Draft income tax forms and rules will be notified in February and opened for stakeholder consultation ahead of the April 1, 2026 implementation.
- CBDT will publish extensive FAQs and presentations to assist taxpayers and officials, anticipating heavy transition queries in the April–June quarter.
- About 88% of individual filers and 97% of presumptive taxpayers have opted for the new regime, which now covers roughly 60% of reported income.
- Officials say there is no immediate plan for a sunset clause on the old regime, preserving taxpayer choice during the shift.
- Personal income tax collections are projected to rise 11.74% in FY27 as refunds fell 16% this year and compliance improves, with Budget measures decriminalising certain offences, revising MAT, and raising STT rates.