The new Income Tax Rules, 2026, are expected to be notified in the first week of March and will come into force from April 1 this year, according to sources in the Central Board of Direct Taxes. The new framework will replace the existing Income Tax Rules, 1962.

The objective of the revised rules is to widen the tax base while making compliance simpler for taxpayers. The Income Tax Department had earlier released draft rules and invited suggestions and comments from stakeholders until the 22nd of this month.

Officials said the new rules are designed to promote ease of doing business by removing outdated and unnecessary compliances. They will also support centralised processing and data-driven decision-making, allowing greater use of technology to improve taxpayer services.

As part of the overhaul, the total number of rules has been reduced from 511 under the old framework to 333 in the new Income Tax Rules, 2026.