Income Tax Rules 2026: India is simplifying its tax system, and for this, it has proposed the Draft Income Tax Rules, 2026 with these, it aims to reduce the number of pages in the income tax rules from 511 pages currently to only 333 pages and forms would also reduce from 399 forms to only 190 forms. It is proposed to come into effect from April 1, 2026.
New Draft Income Tax Rules 2026: All You Want To Know
The Income Tax Department has come out with draft rules showing what the new Income Tax Act of 2025 is going to look like and this includes things such as how long you have to hold capital assets, what is done with zero-coupon bonds, what happens with applications related to infrastructure projects, how valuations are arrived and how to file documents. One important thing to note is that the rules have been scaled down considerably under the current rules, which are part of the Income Tax Rules of 1962, there are 511 rules and 399 forms. Under the draft rules, however, there are 333 rules and 190 forms this is an approximately 35& cut and they say they got rid of redundancies and merged rules.
New ITR Forms Under Draft Tax Rules
- Number of Income Tax Return forms has been significantly reduced
- Common personal and financial details have been standardised across forms
- Pre-filled data and automated reconciliation features introduced
- Language simplified to reduce legal and administrative ambiguity
- Technology-enabled filing to lower error rates
- Centralised processing to improve speed and consistency
- Data-driven assessments to reduce manual scrutiny
Income Tax Return: Public Feedback Open Till Feb 22
The Central Board of Direct Taxes has put the draft rules and forms up for public comment until February 22, 2026. All suggestions invited from tax professionals, industry associations and individual taxpayers basically. The department says this feedback period is designed to make rollout smoother and reduce confusion when the law comes into effect. To aid understanding, two comparison tools have also been released to show how the existing rules differ from the proposed ones.
How to Download New Income Tax Act 2026 PDF
- Visit the official Income Tax Department website
- Open the Draft Rules and Public Consultation section
- Select the Income-tax Rules, 2026 – Draft
- Download the PDF version for offline reference
- Review annexures and revised ITR formats
What Changes in ITR Forms Mean for Everyday Taxpayers
- Simplified ITR forms reduce duplication across sections.
- Prefilled data helps taxpayers complete forms faster.
- Clearer language minimizes confusion and errors.
- Filing becomes more straightforward for common taxpayers.
- Less follow-up and clarification needed from tax authorities.
Income Tax Act 1962
Once finalised, the Income-tax Rules, 2026 will replace the existing Income Tax Rules, 1962, which have guided India’s direct tax system for more than six decades. Experts see this shift as a leap towards simpler language, straightforward tolerance levels and fewer chances for misinterpretation with fewer rules and more intelligent forms, it is expected that tax compliance for ordinary people would become less intimidating.
FAQ’s New Income Tax Rules 2026
When will the new Income Tax Rules 2026 come into force?
The new tax rules are scheduled to take effect from April 1, 2026, starting the financial year 2026–27.
What is the biggest change in the draft tax rules?
The rules sharply reduce complexity by cutting the total number of rules from 511 to 333 and forms from 399 to 190.
Will filing income tax returns become easier for individuals?
The new ITR forms use clearer language, more pre-filled data and standardised fields to lower errors and effort.
Can the public suggest changes to the draft rules?
Yes, Taxpayers and stakeholders can submit feedback until February 22, 2026.
Will the old Income Tax Rules 1962 still apply?
No, Once finalised, the Income Tax Rules 2026 will replace the Income Tax Rules 1962 entirely.
