Income Tax Draft Rules Propose Major Renumbering of Forms Ahead of April 1 Rollout

New Delhi, Feb 2026 : The Union government has initiated a wide-ranging consultation process to seek feedback from stakeholders on the proposed rules and forms under the Income-tax Act, 2025, which is scheduled to come into force from April 1, 2026. The move is aimed at ensuring greater clarity, simplicity and ease of compliance before the new tax framework is formally implemented.

The Finance Ministry announced on Sunday that the draft Income Tax Rules and related forms have been uploaded on the official website to encourage public participation before their final notification. According to the ministry, this step reflects the government’s commitment to transparent policymaking and stakeholder engagement.

In a notification, the Central Board of Direct Taxes (CBDT) stated that the proposed rules and forms have been prepared after extensive consultations and are aligned with the provisions of the Income-tax Act, 2025. Stakeholders, including taxpayers, professionals and industry representatives, have been encouraged to carefully examine the drafts and submit their suggestions for consideration.

As part of the consultative exercise, the CBDT has invited inputs under four specific categories: simplification of language, reduction of litigation, reduction of compliance burden, and identification of redundant or obsolete rules and forms. The objective is to make the tax law more citizen-friendly while minimizing disputes and procedural complexities.

To facilitate the submission of feedback, a dedicated utility has been launched on the income-tax e-filing portal. Stakeholders can access the platform and submit their suggestions by entering their name and mobile number, followed by an OTP-based authentication process. The ministry has clarified that all suggestions must clearly mention the relevant provision of the proposed Income-tax Rules or the specific form number, including the rule, sub-rule or section to which the recommendation relates.

Finance Minister Nirmala Sitharaman, while presenting the Union Budget earlier, had announced that the Income-tax Act, 2025 would replace the Income Tax Act, 1961, following a comprehensive review completed in record time. She emphasized that the new law and redesigned forms are intended to improve ease of living and enable ordinary citizens to comply with tax requirements without difficulty.

Among the notable measures under the new framework are exemptions on insurance interest awards, the introduction of nil deduction certificates for small taxpayers, and an extension of the income tax return filing deadline for non-audit cases to August 31. These steps are expected to provide relief to individual taxpayers and reduce procedural stress.

The e-filing portal link for submitting inputs has been made live and accessible to all stakeholders from February 4, 2026. The government has reiterated that the feedback received will be compiled and reviewed carefully before the final notification of the Income Tax Rules and Forms.

With the new tax regime set to take effect in April 2026, the consultative process is being seen as a crucial step in shaping a simpler, more efficient and less adversarial income-tax system that aligns with contemporary economic realities and taxpayer expectations.