I-T Department now seeking stakeholder suggestions on draft tax rules
What's the story
The Income Tax Department has released draft rules and forms under the new Income Tax Act, 2025. The move is aimed at simplifying tax provisions and reducing compliance burdens for taxpayers. The proposed changes shall come into effect from April 1, replacing the over six-decade-old Income Tax Act of 1961. The department has now invited stakeholder comments on these drafts by February 22, after which they will be finalized.
Major changes
Major overhaul in draft rules
The draft Income Tax Rules, 2026, is a major overhaul from its predecessor. The old one had 511 rules and 399 forms. The new draft proposes to remove redundancy and consolidate rules wherever possible, bringing down the number to 333 rules and 190 forms. This simplification process is part of a larger effort by the Central Board of Direct Taxes (CBDT) to make tax compliance easier for taxpayers.
User-friendly design
New forms more user-friendly
The new IT forms have been simplified to make them more user-friendly. They now feature standardized common information across all forms, reducing the compliance burden on taxpayers. The department said these "smart" forms also provide for automated reconciliation and pre-fill capabilities, making the filing more intuitive and less prone to errors. The language of these forms has also been simplified to avoid any operational or legal ambiguity.
Feedback mechanism
Stakeholders can provide feedback on draft rules
The IT Department has set up a mechanism for stakeholders to provide their feedback on the draft rules. This can be done by visiting the e-filing portal (www.incometaxindia.gov.in) and accessing the feedback utility through a specific URL provided for the comprehensive review. The department has also provided two navigators mapping old and new draft rules/forms for guidance.