New Income Tax Rules Draft Released: CBDT Seeks Public Input for Simpler Compliance

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AuthorVihaan Mehta|Published at:
New Income Tax Rules Draft Released: CBDT Seeks Public Input for Simpler Compliance
Overview

The Central Board of Direct Taxes (CBDT) has released draft income tax rules under the new Income Tax Act, 2025, set to take effect April 1, 2026. Aimed at enhancing ease of compliance, the CBDT is actively inviting suggestions from stakeholders across four key areas: simplifying language, reducing litigation, cutting compliance burdens, and identifying obsolete rules. This consultation phase precedes the final notification of the rules and forms.

Consultation Opens for New Tax Regime

The Central Board of Direct Taxes (CBDT) has formally begun a public consultation process for the draft income tax (IT) rules that will govern the upcoming Income Tax Act, 2025. This significant legislative overhaul, which received Presidential assent in August 2025 and is slated to become effective from April 1, 2026, aims to streamline India's direct tax framework. The proposed rules and forms are now accessible on the official website, allowing stakeholders to contribute before final gazette notification.

Overhaul Simplifies Tax Structure

The new Income Tax Act, 2025, represents a substantial departure from the 1961 Act, dramatically reducing its complexity. The number of chapters has been halved from 47 to 23, and the total number of sections has been trimmed from 819 to 536. While the core provisions are simplified, the number of tables and formulas has seen an increase to 57 and 36, respectively. This restructuring is designed to foster greater ease of compliance for taxpayers.

Stakeholder Input Sought

The CBDT is specifically soliciting feedback in four crucial categories: simplification of legal language, measures to reduce litigation, strategies for lowering the compliance burden, and the identification of any redundant or obsolete rules and forms. This broad consultative approach underscores the government's commitment to creating a taxpayer-friendly environment. A dedicated utility has also been launched on the e-filing portal to facilitate stakeholder access and submission of recommendations. All suggestions must clearly reference the specific rule, sub-rule, or form number under consideration, alongside the relevant category for feedback.

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