CBDT Notifies New Income Tax Rules 2026: What Changes from April 1
The Central Board of Direct Taxes has officially notified the rules for the new Income-tax framework, paving the way for a simplified tax system in India from April 1, 2026.
These rules will operationalise the Income-tax Act, 2025, which was approved by Parliament last year to replace the decades-old tax structure.
According to the official notification, "These rules may be called the Income-tax Rules, 2026. They shall come into force on the April 1, 2026," a gazette notification said.
The updated framework removes outdated provisions and reduces complexity significantly. The number of sections has been brought down from 819 in the old Income-tax Act, 1961 to 536, while chapters have been reduced from 47 to 23.
In addition, the total word count of the law has been cut nearly in half, from 5.12 lakh words to 2.6 lakh words.
This move is expected to improve transparency while continuing to provide tax relief to eligible taxpayers.
These rules will operationalise the Income-tax Act, 2025, which was approved by Parliament last year to replace the decades-old tax structure.
According to the official notification, "These rules may be called the Income-tax Rules, 2026. They shall come into force on the April 1, 2026," a gazette notification said.
New Rules Aim to Simplify Tax Laws
The new tax law does not introduce any new tax rates. Instead, its primary objective is to simplify the language and structure of existing provisions, making them easier for taxpayers to understand and comply with.The updated framework removes outdated provisions and reduces complexity significantly. The number of sections has been brought down from 819 in the old Income-tax Act, 1961 to 536, while chapters have been reduced from 47 to 23.
In addition, the total word count of the law has been cut nearly in half, from 5.12 lakh words to 2.6 lakh words.
HRA Benefits and Disclosure Rules
The new rules retain the proposed framework for House Rent Allowance benefits for salaried individuals. At the same time, they make it mandatory to disclose the landlord-tenant relationship while claiming HRA.This move is expected to improve transparency while continuing to provide tax relief to eligible taxpayers.
More Clarity with Tables, Forms and Formulas
To make the law more user-friendly, the new system introduces structured formats instead of dense legal text.Next Story