New Delhi | RBN News
The Income Tax Department has released draft rules and forms under the upcoming Income Tax Act, 2025, marking a major step towards simplifying tax laws, easing compliance, and improving the overall taxpayer experience. The department has invited comments and suggestions from stakeholders for a limited period.
The new law will replace the Income Tax Act of 1961, which has been in force for more than six decades, and is scheduled to come into effect from April 1.
🔍 What Taxpayers Should Do Now
Taxpayers, professionals, industry bodies and other stakeholders are encouraged to:
- Review the Draft Income Tax Rules, 2026 and the accompanying forms
- Submit suggestions, objections or improvement proposals through the designated feedback mechanism
The department has specifically urged stakeholders to carefully examine the draft framework and participate in the consultation process.
🗓️ Deadline for Submitting Feedback
- The draft rules and forms will remain open for public consultation for 15 days
- Last date to submit feedback: 22 February 2026
The I-T Department clarified that inputs received within this window will be considered before finalising the rules.
📉 Major Structural Changes in Tax Rules
Fewer Rules, Fewer Forms
One of the most significant changes is the reduction in volume and complexity:
- Existing Income Tax Rules, 1962:
- 511 rules
- 399 forms
- Proposed Draft Income Tax Rules, 2026:
- 333 rules
- 190 forms
According to the department, this has been achieved by removing duplication, merging overlapping provisions, and eliminating obsolete requirements.
🧾 Simplified and Smarter Income Tax Forms
The new draft introduces redesigned tax forms aimed at reducing errors and manual effort:
- Standardisation of commonly used information across forms
- Built-in auto-reconciliation and pre-fill features
- Clearer, simpler language to avoid legal or procedural ambiguity
Officials said the new “smart forms” are intended to make return filing more intuitive, faster, and less error-prone, especially for individual taxpayers and small businesses.
⚙️ Simplification of Tax Provisions
The draft rules focus on:
- Making tax provisions easier to understand
- Streamlining procedures to reduce interpretational disputes
- Enhancing ease of living and ease of doing business
The department said the reforms are designed to make compliance less intimidating, particularly for first-time and small taxpayers.
🧭 New Tools for Easier Transition
To help users navigate the transition, the Income Tax Department has also released:
- A rule-mapping navigator linking old rules with the new draft rules
- A form-mapping navigator showing how existing forms correspond to the new ones
These tools are meant to assist taxpayers, consultants and businesses in understanding changes without confusion.
📌 What This Means for Taxpayers
- Simpler rules and forms from FY 2026 onwards
- Reduced paperwork and compliance burden
- Greater use of automation and digital assistance
- Opportunity to influence final rules through feedback
Taxpayers are advised to actively participate in the consultation process, as the final framework will shape tax compliance for years to come.
