Govt releases draft forms of I-T Act 2025:Invites public for suggestions on proposed rules forms of the new act which takes effect from April 1, 2026

The Income Tax Department has issued a new draft of ‘Income Tax Rules, 2026’ on Saturday, February 8, 2026. These new rules will be effective from the next financial year ie April 1, 2026. The government’s aim is to simplify the tax filing process and make it easier for common taxpayers to file taxes. The number of rules and forms has also been reduced in the new proposed draft. The currently applicable ‘Income Tax Rules, 1962’ had a total of 511 rules and 399 forms. In the new draft, these have been reduced to just 333 rules and 190 forms. The department has removed provisions that were no longer needed and merged several similar rules together. This will reduce the complexity of the tax system. Forms will be prepared in simple language for common people Finance Minister Nirmala Sitharaman had said during the budget speech that income tax rules and forms would be simplified so that common citizens can comply with them without any hassle. The forms have been redesigned in the new draft. Experts say that the language of the forms has now been made more ‘user-friendly’ to reduce administrative and legal complications. Also, the guidelines provided with the forms have been simplified. People can give suggestions till February 22 The Central Board of Direct Taxes (CBDT) has put this draft in the public domain. The general public and stakeholders can give their suggestions on these proposals for the next 15 days, i.e., till February 22, 2026. The government believes that taking public opinion will make the law more effective and inclusive. Based on the suggestions, the final rules will be notified. 4 major points of the new Income Tax ACT: