New I-T rules, forms by March; Income Tax Act to take effect from April 1, 2026

New Delhi, Feb 10, 2026

Synopsis
While income tax returns under the new Act will be filed by taxpayers in July 2027, under the new rules the forms, including advance tax and tax deduction at source, will come into force by April 1, 2026. The new rules, which overhaul employee perquisite valuation, will be applicable to salaried taxpayers under both the old and the new tax regimes.

The income tax department will notify the new income tax rules and forms by the first week of March, officials said, paving the way for implementation of the Income Tax Act, 2025 from April 1.

While income tax returns under the new Act will be filed by taxpayers in July 2027, under the new rules the forms, including advance tax and tax deduction at source, will come into force by April 1, 2026. The new rules, which overhaul employee perquisite valuation, will be applicable to salaried taxpayers under both the old and the new tax regimes.

The Central Board of Direct Taxes (CBDT) released the draft rules for public consultation on Saturday.

"These rules are made with a long-term vision and we will ensure that all income reported is auto-populated in the forms, making tax filing very easy for employers," an official said, adding that this will also make incorrect reporting of income difficult.

The official said the changes, combined with a technology-enabled compliance architecture, will significantly simplify tax filing and improve the accuracy of income reporting.

"We are open to taking all feedback, revising and correcting wherever necessary as these rules are going to stay for a long period, giving tax certainty to both businesses and common taxpayers," the official said.

[The Economic Times]