IT Rules
To notify new Income Tax rules, forms by March first week, CBDT sources say
This story was originally published at 15:44 IST on 9 February 2026
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NEW DELHI - The finance ministry will notify the final rules and forms under the new Income Tax Act by the first week of March, sources in the Central Board of Direct Taxes said Monday. "We could notify by the end of February, but latest by March first week," one of the sources cited above said.
The Income Tax Department released the Draft Income-tax Rules, 2026 Saturday, along with draft forms to implement the Income-tax Act, 2025, offering a detailed preview of the revamped tax framework, which will take effect from Apr. 1. The government sought feedback from stakeholders by Feb. 22.
According to sources, the intent of the new forms is to reduce redundant forms and provisions, capture updated information for analysis, and broaden the tax base. Under the new Income Tax Act, the number of forms has been reduced from 399 to 190. The government also reviewed the forms filled out on paper and made provisions to digitise them as well, they said.
Key provisions in the new forms and rules also apply to the old tax regime, which offers significant exemptions. Keeping up with changing socio-demographic and economic conditions, the government extended the 'house rent allowance' exemption to four more cities. At present, taxpayers in big metros, including Chennai, Delhi, Kolkata and Mumbai, are eligible for a 50% HRA exemption, while taxpayers in other urban centres are eligible for a 40% exemption.
The proposal seeks to expand the 50?nefit to Ahmedabad, Bengaluru, Hyderabad and Pune. Other cities remain at 40%. End
Reported by Priyasmita Dutta
Edited by Saji George Titus
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