Big news for taxpayers! CBDT has revised income tax rules; major changes to Forms 169 and 171...
The CBDT has provided significant relief to taxpayers and tax professionals across the country by introducing major changes to the Income Tax Rules. Under a new notification issued by the Income Tax Department, necessary amendments and modifications have been made to the existing formats of Form 169 and Form 171. Additionally, the CBDT has extended the deadlines for filing these forms and completing the associated mandatory tax compliance processes, thereby granting taxpayers extra time to submit their documents with accurate details.
This new change in income tax rules aims to make the tax compliance process more transparent, simple, and accessible. Taking into account technical aspects and suggestions from taxpayers, the CBDT has significantly simplified the newly revised forms. The extension of compliance deadlines will relieve Chartered Accountants (CAs), corporates, and relevant taxpayers from last-minute rushes and server-related issues, allowing them to submit their details without incurring late fees or penalties.
**Changes in Electronic Communication**
This amendment alters the terminology regarding the mode of communication (exchange of information) in Rule 176. The phrase "by way of an electronic communication" has been substituted for the words "by affixing a digital signature."
**Changes in Tax Recovery Rules**
The CBDT has also amended Rule 225, which pertains to tax recovery. Several provisions under this rule have been removed, including those related to arrest and detention. This amendment eliminates references to arrest and detention from the relevant provisions of the tax recovery rules.
**Extended Deadline for Valuers**
This amendment provides more time to individuals seeking registration as valuers. Under Rule 246, the previously set deadline of September 30, 2026, has been extended to March 31, 2027. Applicants now have an additional six months to complete the registration process.
Deadline Extended for Practitioners
A similar extension has been granted under Rule 256. The deadline for the registration process for registered income tax practitioners, previously set for September 30, 2026, has now been extended to March 31, 2027.
Deadline for Tax Audit Report
The deadline for the income tax audit for the financial year 2026-2027 is September 30, 2026, and this applies to a specific category of taxpayers. Only Chartered Accountants can conduct income tax audits; the CA must complete the audit and upload the tax audit report to the ITR e-filing system on behalf of the taxpayer. Under Section 44AB of the Income-tax Act, 1961, taxpayers are required to have their accounts audited by a Chartered Accountant and submit the tax audit report.