North India Statesman
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New Delhi. A new era is about to begin in the direct tax history of India. The Income Tax Department has released the draft of ‘Income Tax Rules, 2026’, which will form the basis of ‘New Income Tax Act, 2025’ to be implemented from April 1, 2026. This step will prove to be a great relief to the taxpayers by ending the web of complex rules that have been in place for the last six decades.
The government has presented this draft for public discussion, on which tax professionals and common citizens can 22 February You can give your feedback till.
Modern system will replace the old style of 1962
The language and procedures of the old rules dating back to 1962, which had been in place since Independence, were often difficult for common taxpayers to understand. In the new proposed framework, the government has increased the number of these rules. Reduction from 511 to only 323 Done.
Simple language: The rules have been made short and understandable so that disputes over legal interpretation can be reduced.
Modern Structure: The main objective of this change is to make the tax administration completely digital and modern.
Filing will become easier with technology based ‘smart forms’
Under the new rules, the experience of filing Income Tax Return (ITR) will completely change.
Pre-fill Capacity: Your income and investment information will be pre-populated in the new forms.
Smart Design: It will have features like automated reconciliation, which will eliminate the scope for human mistakes.
Fast Processing: With better use of technology, the speed of refund receipt and ITR processing will increase manifold.
There will be clarity on the rules of properties and investment
Historically, most of the disputes in income tax have been over valuation of assets and holding period. The draft rules provide specific clarity on:
Fair Market Value: New and transparent methods have been introduced to determine the fair market value of properties.
Capital Assets: Calculating the holding period of capital assets will now be more rational.
New ITR Format: Soon the government will make public simple and new ITR forms, which will be ‘user friendly’ for the common man.
After the suggestions will be effective from 1st April
The Income Tax Department has clarified that these rules are not final yet. Necessary amendments will be made in these on the basis of suggestions received from industry, corporates and tax experts by 22 February. After getting approval, 1 April 2026 These new laws and rules will become effective in the entire country.
