Draft Income-Tax Rules 2026 By Taxmann – Edition 2026

Draft Income-tax Rules 2026 is Taxmann’s authoritative statutory compilation presenting the Draft Income-tax Rules and Draft Forms 2026 (dated 7th February 2026), released by the Central Board of Direct Taxes (CBDT) in the public domain ahead of the proposed enforcement of the Income-tax Act 2025 from 1st April 2026. This Edition (February 2026) is editorially positioned as a transition, consultation, and implementation reference, enabling stakeholders to study, analyse, and prepare for the complete redesign of India’s income-tax subordinate legislation framework. Beyond reproducing the draft statutory text, the publication is engineered as a rule-migration and compliance-system mapping tool. It integrates the full draft rules, the complete set of redesigned draft forms, and two exhaustive navigators that map the Draft Income-tax Rules 2026 and Forms with their corresponding provisions under the Income-tax Rules 1962. The result is a single, coherent volume that allows users to trace continuity, consolidation, renumbering, procedural restructuring, and technology-driven redesign under the proposed regime.

This publication is intended for advanced professional, institutional, and policy users who must engage with the design, impact, and operationalisation of the new income-tax rules framework, including:

• Chartered Accountants, Cost Accountants, Company Secretaries, and Tax Consultants
• Tax Advocates and Litigation Professionals
• Corporate Tax, Compliance, and Finance Teams involved in SOP and system redesign
• ERP, Reporting, and Data-Governance Implementation Teams
• Government Officers, Policymakers, and Law-Drafting Authorities
• Industry Bodies and Professional Associations preparing consultation feedback
• Academicians, Researchers, and Advanced Students of direct tax law

The Present Publication is the 63^rd Edition | 2026, covering Draft Income-tax Rules & Forms as released on 7th February 2026. It is edited by Taxmann’s Editorial Board with the following noteworthy features:

• [Complete Draft Income-tax Rules 2026] Full and faithful reproduction of the draft rules as placed in the public domain, preserving statutory language, rule numbering, cross-references, schedules, and internal structure
• [Complete Draft Forms under Income-tax Rules 2026] Incorporates all 190 draft forms, redesigned to support simplified language, standardised information capture, automated reconciliation, pre-fill capability, and centralised processing
• [Rule-wise Navigator—2026 vs 1962] Exhaustive tables mapping each draft rule with its corresponding provision under the Income-tax Rules 1962—enabling instant identification of retained, consolidated, relocated, or omitted provisions
• [Form-wise Navigator—2026 vs 1962] Structured comparison of draft forms with legacy forms, facilitating transition planning and system reconfiguration
• [Policy-driven Simplification Architecture] Reflects the drafting philosophy of the new Income-tax Act 2025—simplified language, reduced redundancy, use of tables and formulas, and a decisive move towards leaner subordinate legislation

The publication offers layered, end-to-end coverage of the draft regime:

• CBDT Policy Note on Draft Rules & Forms
  • Explains the rationale for public consultation and stakeholder participation
  • Articulates the simplification and rationalisation objectives
  • Quantifies Consolidation – Reduction from 511 rules and 399 forms under the 1962 framework to 333 rules and 190 forms under the draft regime
  • Emphasises technology-enabled compliance and reduced ambiguity
• Draft Income-tax Rules 2026
  • Preliminary provisions, definitions, and commencement framework
  • Computation, valuation, and procedural rules across income heads
  • Detailed rule-based mechanisms for non-resident taxation, valuation of perquisites, depreciation, deductions, approvals, registrations, and reporting
  • Extensive international tax and transfer pricing architecture, including arm’s length determination, safe harbour rules, income attribution mechanisms, and a complete Advance Pricing Agreement (APA) procedural framework
  • Digitally aligned procedural rules governing electronic furnishing, verification, data standards, system security, and archival policies
  • Capstone operational rules mandating electronic filing and electronic payment of tax
• Draft Forms under Income-tax Rules 2026
  • Redesigned statutory forms covering reporting, audit, approvals, certifications, information statements, valuation, scientific research, specified businesses, and institutional compliance
  • Forms structured as the execution layer of the draft rules, aligned with automated processing and data-driven administration
• Appendices Supporting Computation and Application
  • Appendix I – Depreciation rates based on written down value (WDV), organised by asset blocks
  • Appendix II – Depreciation rates based on actual cost for specified asset classes
  • Appendix III – Prescribed statutory forms referenced throughout the rules
• Navigators for Rules and Forms
  • Rule-wise and form-wise mapping tables connecting the draft framework with the Income-tax Rules 1962—essential for impact assessment, compliance migration, and consultation submissions

The book follows a transition-first statutory architecture, enabling systematic navigation:

• CBDT policy note and drafting context
• Draft Income-tax Rules 2026 (rule-wise, in statutory order)
• Appendices supporting computation and application
• Draft Forms (arranged sequentially)
• Rule-wise and Form-wise Navigators (2026 vs 1962)
• This structure allows users to move seamlessly from policy intent → draft law → operational mechanics → historical comparison