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Draft Income-Tax Rules, 2026 Released for Public Comment Ahead of April 2026 Overhaul

The draft outlines a leaner tech-enabled compliance framework ahead of expected notification in early March.

Overview

  • The Central Board of Direct Taxes has opened a 15-day consultation through February 22 on draft rules and forms via an OTP-validated utility on the e-filing portal.
  • The framework consolidates the rulebook from 511 to 333 rules and trims forms from 399 to 190, with navigators mapping legacy provisions and forms to the proposed versions.
  • Redesigned income-tax return forms are positioned as smart, technology-enabled filings with prefilled data, automated reconciliation and centralised processing to reduce errors and duplication.
  • Commonly used documents are renumbered and consolidated, including Form 16 to Form 130, Form 26AS to Form 168, and audit reports in Forms 3CA/3CB/3CD merged into a single Form 26.
  • Taxpayer-facing proposals in the draft include higher perquisite thresholds, adding Bengaluru, Hyderabad, Pune and Ahmedabad to the higher HRA bracket, new PAN-quoting norms for select transactions, recognition of CBDC for e-payments and information-sharing by crypto exchanges.