CBDT opens public consultation on draft Income-tax Rules and Forms under new Income-tax Act, 2025
The Ministry of Finance has initiated a comprehensive public consultation for finalising the new framework of Income-tax Rules and Forms that will operate under the Income-tax Act, 2025, proposed to take effect from 1 April 2026. To ensure that the new regime is practical, transparent, and less burdensome, the Central Board of Direct Taxes (CBDT) has placed the draft Rules and Forms in the public domain and has set up a dedicated digital mechanism for receiving structured feedback from stakeholders.
Background: Transition to the new Income-tax Act, 2025
The Income-tax Act, 2025 received the assent of the President in August 2025. The law is scheduled to be implemented from 1 April 2026, marking a significant overhaul of the direct tax framework in India.
To operationalise this legislation, a fresh set of Income-tax Rules and corresponding statutory Forms is required. These Rules and Forms:
- Provide procedural clarity for various provisions of the Act
- Prescribe formats, declarations, and compliances for assessees
- Enable administration and enforcement by the income-tax authorities
In line with this, the CBDT has drafted new Rules and Forms, aligning them with the structure and intent of the Income-tax Act, 2025, after conducting internal and broad-based consultations.
Publication of draft Rules and Forms
To promote transparency and enable meaningful public participation, the CBDT has:
- Uploaded the proposed Income-tax Rules and Forms on the official income-tax website:
www.incometaxindia.gov.in - Invited comments and suggestions before these are notified in their final form
- Clarified that these drafts are subject to modification based on the feedback received
Stakeholders, including assessees, tax professionals, industry bodies, trade associations, academic institutions, and other interested persons, are encouraged to carefully review the draft material and submit reasoned suggestions.
Objectives of the stakeholder consultation
The consultative exercise is not a mere formality; the CBDT has clearly outlined focused areas where inputs are particularly sought. The key objectives are:
1. Simplification of language
The CBDT aims to ensure that the language of the Rules and Forms is:
- Clear and easy to understand for assessees
- Minimally reliant on complex or archaic legal expressions
- Structured in a way that reduces ambiguity and interpretation disputes
Stakeholders are expected to flag:
- Provisions where the wording is confusing or overly legalistic
- Instances of repetitive or convoluted drafting
- Opportunities to simplify explanations, instructions, and definitions
2. Reduction of litigation
One of the central goals of the new regime is to minimise disputes between assessees and the department. Inputs are invited on:
- Rules that may give rise to conflicting interpretations
- Provisions which, based on past experience, have been litigation-prone
- Gaps where clarificatory language or illustrations can prevent future disputes
Where stakeholders identify such issues, they should:
- Cite the specific rule, sub-rule, or Form provision
- Explain how it may result in disputes
- Suggest alternative language or an approach that can mitigate litigation