New Delhi, March 21 -- The Finance Ministry on 20 March notified the draft Income Tax Rules, 2026, which will come into effect from 1 April. The new rules are set to majorly overhaul the procedural and compliance systems under direct taxation.

This comes after the Central Board of Direct Taxes (CBDT) put out its Draft Income Tax Rules in January. The new Income Tax Rules 2026 will make it possible for the New Income Tax Act, 2025, to come info effect replacing the 1961 Act, from 1 April 2026.

The Income Tax Rules, 2026 aim to enhance transparency, digitisation, and standardisation. The focus is on stronger data reporting, clearer cross-border taxation, and improved regulatory frameworks to reduce disputes and strengthen enforcement.

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