CBDT Issues Draft Income Tax Rules, 2026 for Public Consultation

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  • Last Updated on 9 February, 2026

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draft Income-tax Rules 2026

Press Release, dated 07-02-2026

The Central Board of Direct Taxes (CBDT) has released the draft Income-tax Rules, 2026 for public consultation. Stakeholders and members of the public have been invited to submit their feedback and comments on the draft rules and forms.

1. Timeline for Submission of Comments

  • Last date to submit comments – 22 February 2026

The consultation process is intended to ensure stakeholder participation before finalisation of the new rules.

2. Philosophy and Approach Behind the Draft Rules

The drafting of the Income-tax Rules, 2026 and the associated forms follows the same guiding philosophy as the Income-tax Act, 2025, with a strong focus on simplification and usability.

Key drafting principles include:

  • Use of simple and clear language
  • Incorporation of formulas and tables wherever required to improve clarity
  • Logical structuring of provisions to enhance readability

3. Elimination of Redundancy and Consolidation

CBDT has sought to eliminate redundancies present in the Income-tax Rules, 1961.

The draft rules aim to simplify and consolidate provisions, resulting in a significant reduction in volume:

  • Number of rules reduced – from 511 to 333
  • Number of forms reduced – from 399 to 190

This consolidation is intended to make the tax framework more streamlined and easier to navigate.

4. Alignment with the Income Tax Act, 2025

While preserving the overall policy intent, the draft rules incorporate necessary changes aligned with amendments introduced under the Income-tax Act, 2025.

The intent is to ensure consistency between the Act and the Rules without altering substantive policy outcomes.

5. Simplification and Standardisation of Forms

The draft rules place significant emphasis on simplifying tax compliance through improved form design:

  • Forms have been simplified to a large extent to make them more taxpayer-friendly
  • Standardisation of common information across forms has been implemented to reduce repetitive disclosures
  • Forms are designed to:
    1. Enable automated reconciliation
    2. Support prefill of data
    3. Make filing more intuitive and less error-prone

These changes aim to reduce the compliance burden on taxpayers and improve the overall filing experience.

6. Key Takeaway

The draft Income-tax Rules, 2026 represent a major step towards:

  • Simplified tax administration
  • Reduced compliance complexity
  • Greater use of automation and standardisation

Stakeholders are encouraged to review the draft rules and submit comments by the stipulated deadline.

Click Here To Read The Full Press Release

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied