New Income-tax Act kicks in April 1: CBDT puts draft rules/forms online, seeks public suggestions

The Act will come into effect from 1 April 2026.

• Govt seeks stakeholder input on Income-tax Act, 2025 and related rules
• Inputs can be submitted via e-filing portal from February 4, 2026
• Suggestions should cover language, litigation, compliance, or outdated rules/forms.

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The government has urged stakeholders to study the Income-tax Act, 2025, and make suggestions, which will be compiled and considered for review before final notification.

The Income-tax Act, 2025, received the assent of the President in August 2025.

The Act will come into effect from 1 April 2026.

The corresponding Income Tax Rules and related forms have been prepared after broad-based consultation to align with the provisions of the Income Tax Act, 2025.

“Before final notification of the Income Tax Rules and Forms, to encourage wider stakeholder participation, the proposed Income Tax Rules and Forms have been uploaded on the official website: www.incometaxindia.gov.in. Stakeholders are encouraged to study the same and make suggestions, which will be compiled and considered for review before final notification,” according to a statement by the Central Board of Direct Taxes (CBDT).

As part of a wider consultative process, the Income Tax Department invites inputs and suggestions from stakeholders in the following four categories: Simplification of Language; Reduction of Litigation; Reduction of Compliance Burden; and Identification of

Redundant/Obsolete Rules and Forms.

To facilitate this, a utility has been launched on the e-filing portal, which can be accessed through the dedicated link.

The dedicated link is live and accessible to all stakeholders from February 4, 2026, on the e-filing portal. Stakeholders can submit their inputs by entering their name and mobile number, followed by an OTP-based validation process.

“All suggestions should clearly specify the relevant provision of the proposed Income-tax Rules or the proposed Form No. (including the specific rule, sub-rule, or form number) to which the recommendation pertains under the aforementioned four categories,” CBDT added.

The Government had said in the budget in July 2024 that a time-bound comprehensive review of the Income-tax Act, 1961, would be undertaken to make the Act concise, lucid, and easy to read and understand.