In a historic move towards tax transparency and citizen participation, the Central Board of Direct Taxes (CBDT) has opened its doors to every Indian citizen, taxpayer, chartered accountant, tax professional, and business owner — inviting them to review and suggest improvements to the Draft Income Tax Rules 2026 and Draft Income Tax Forms 2026 before they are officially notified.
This is not just a routine government notification. This is the first time in over 60 years that India is completely replacing its income tax framework — the Income Tax Act 1961 is being repealed and replaced by the Income Tax Act 2025, which received Presidential assent in August 2025 and will come into effect from 1st April 2026. Along with the new Act, entirely new Rules and Forms have been drafted, and the government wants your feedback before finalizing them.
Deadline Alert
The feedback portal is accepting suggestions until 22nd February 2026. After this date, the window closes and the rules will be finalized without further public input. If you are a taxpayer, CA, CS, tax lawyer, or business owner — this is your chance to shape the tax system.
What Has Happened? The Big Picture
The Income Tax Act 1961 — the law that has governed how every Indian pays income tax for over six decades — is being officially repealed on 1st April 2026. In its place, the Income Tax Act 2025 will take effect. This new Act was passed by Parliament and received Presidential assent in August 2025 with the stated goal of making India's tax law simpler, clearer, and less prone to litigation.
But a tax Act by itself is just the skeleton. The real day-to-day compliance — how you file returns, which forms you use, how perquisites are calculated, what documents you need — all of this is governed by the Income Tax Rules and Income Tax Forms. These are the muscles and nerves of the tax system. And now, for the first time, the government has released the complete draft of these new Rules and Forms for public review.
The draft was uploaded on the official Income Tax website (www.incometaxindia.gov.in) on 7th February 2026, and a dedicated feedback utility was launched on the e-filing portal on 4th February 2026.
Key Concept
Think of it this way: the Income Tax Act 2025 is the Constitution of your tax obligations, while the Income Tax Rules 2026 are the detailed bye-laws that tell you exactly how to comply. The Forms are the actual paperwork (now digital) you fill out. The government is asking citizens to review the bye-laws and paperwork before they become final.
Why This Matters to Every Indian Taxpayer
You might wonder — why should an ordinary salaried employee or a small shopkeeper care about income tax rules? Here's why this matters to you personally, regardless of whether you're a chartered accountant or someone who simply files ITR-1 every year.
First, these rules directly determine your tax burden. The proposed draft changes several allowance limits, perquisite valuations, and exemption thresholds. For example, the Children Education Allowance is proposed to be increased from ₹100 per month to ₹3,000 per month per child — a 30x increase. The Hostel Expenditure Allowance jumps from ₹300 to ₹9,000 per month per child. The interest-free loan exemption from employers increases from ₹20,000 to ₹2,00,000. These are changes that affect millions of salaried employees.
Second, the forms you file will change completely. The existing 399 forms are being consolidated into just 190 forms. If you've ever struggled with complicated ITR forms or confusing compliance requirements, this is your chance to tell the government exactly what needs to be simplified.
Third, this is genuinely rare. The government has never before invited public feedback on draft income tax rules at this scale. The dedicated e-filing portal utility makes it easy for anyone with a mobile phone to participate. Your suggestion could literally change how millions of people file their taxes.
Key Numbers: Old vs New at a Glance
The sheer scale of simplification is remarkable. The existing Income Tax Rules 1962 contain 511 rules and 399 forms. The proposed Income Tax Rules 2026 reduce this to just 333 rules and 190 forms — a reduction of approximately 35% in rules and over 52% in forms. This was achieved by removing redundancies, consolidating overlapping provisions, and eliminating obsolete requirements that had accumulated over 60+ years.
The 4 Categories for Your Suggestions
CBDT has organized the feedback process around four specific categories. Each category addresses a different dimension of tax law improvement, and your suggestion must clearly fall into one of these four areas. Let's understand what each category means in practical terms.
Simplification of Language
Are there rules or forms where the language is overly technical, ambiguous, or difficult for an average taxpayer to understand? Suggest clearer, simpler wording that makes compliance easier for everyone — not just CAs and lawyers.
Litigation Reduction
Can you identify provisions that are likely to cause disputes between taxpayers and the department? Ambiguous definitions, conflicting clauses, or vague thresholds that will inevitably end up in tribunals and courts — flag them now.
Obsolete Provisions
Are there rules or forms that are outdated, redundant, or no longer relevant in today's digital economy? Legacy provisions that reference outdated technology, defunct schemes, or superseded regulations — suggest their removal.
Compliance Reduction
Can documentation requirements be streamlined? Are there forms that ask for the same information multiple times? Can procedural steps be reduced or digitized further? Suggest ways to reduce the compliance burden on taxpayers.
Important Note
Your suggestion must clearly specify the exact rule number, sub-rule, or form number from the proposed draft (not the existing 1962 rules) and clearly state which of the four categories it falls under. Generic suggestions without specific references may not be considered.
Step-by-Step: How to Submit Your Suggestions on the E-Filing Portal
The entire process is online, requires no login or registration on the e-filing portal, and can be completed in about 10 minutes. Here is a detailed walkthrough based on the actual portal interface.
Visit the Feedback Utility Link
Open this direct link in your browser: https://eportal.incometax.gov.in/iec/foservices/#/pre-login/ita-comprehensive-review. This takes you to the "Suggestions on Proposed Income Tax Rules and Forms" page on the e-filing portal. No login is required — this is a pre-login public utility.
Enter Your Name & Mobile Number
You'll see a form with two mandatory fields: Name and Mobile Number (with Indian flag/country code pre-selected). Enter your details and click the "Generate OTP" button at the bottom right corner. The system uses OTP-based validation to prevent spam submissions.
Verify with OTP
You will receive a 6-digit OTP on your registered mobile number. The OTP expires in 15 minutes, and you can resend it only once. Enter the OTP in the six input boxes on the verification screen and click "Validate". Once verified, you proceed to the suggestion form.
Select "Forms" or "Rules"
On the suggestion page, you'll see two radio buttons at the top: Forms and Rules. Select whether your suggestion relates to a proposed Form or a proposed Rule. Then, in the text field below, enter the specific Form number or Rule number from the proposed draft (e.g., "Form No. 6" or "Rule 15") against which you want to submit your feedback.
Write Your Suggestions in the 4 Category Fields
The form shows four text areas — one for each feedback category: (1) Simplification of Language, (2) Litigation Reduction, (3) Obsolete Provisions, and (4) Compliance Reduction. Each field has a 500-character limit. You must fill at least one of the four fields. Write clear, specific, and constructive feedback. You can submit multiple responses for different forms/rules.
Submit Your Response
Once you've written your suggestions in at least one category field, click the "Submit" button at the bottom right. Your feedback is recorded and will be compiled by CBDT for review. You can go back and submit additional suggestions for other forms or rules by repeating the process.
Common Error
If you click "Submit" without filling at least one of the four feedback fields, you will see an error message: "Kindly provide feedback for at-least one input out of above 4 types to submit your response." Make sure you write in at least one category before submitting.
Major Proposed Changes You Should Know About
Before you submit your suggestions, it helps to understand the most significant changes proposed in the Draft Income Tax Rules 2026. Here are the key highlights that affect different categories of taxpayers.
For Salaried Employees
| Provision | Old Rule (1962) | Proposed Rule (2026) |
|---|---|---|
| Children Education Allowance | ₹100/month per child (max 2) | ₹3,000/month per child (max 2) |
| Hostel Expenditure Allowance | ₹300/month per child (max 2) | ₹9,000/month per child (max 2) |
| Interest-free/Concessional Loan | No perquisite if loan ≤ ₹20,000 | No perquisite if loan ≤ ₹2,00,000 |
| HRA — 50% Exemption Cities | Mumbai, Delhi, Chennai, Kolkata only | + Hyderabad, Bengaluru, Pune, Ahmedabad |
| Motor Car Perquisite | Older valuation rates | Updated rates reflecting current market |
For All Taxpayers
| Area | Old Position | New Proposed Position |
|---|---|---|
| PAN Application — Birth Certificate | Birth certificate not mandatory | Mandatory for individuals born on/after 1 Oct 2023 |
| Cash Transaction PAN Threshold | Old monetary limits | Revised higher thresholds for PAN quoting |
| Total Number of Rules | 511 rules | 333 rules (35% reduction) |
| Total Number of Forms | 399 forms | 190 forms (52% reduction) |
| Language & Drafting | Complex, accumulated over 60 years | Drastically simplified wording |
Important Form Changes: Old vs New
One of the most impactful changes for taxpayers is the complete renumbering and redesign of income tax forms. Many forms that existed under the old regime have been replaced, consolidated, or eliminated entirely under the new draft. Here are some key forms from the Draft Income Tax Forms 2026 list.
| S.No. | New Form No. | Purpose / Description |
|---|---|---|
| 1 | Form No. 1 | Monthly statement by stock exchange for modified client codes |
| 2 | Form No. 2 | Application for zero coupon bond notification under Section 2(112) |
| 3 | Form No. 3 | Certificate of an accountant under Rule 7 |
| 4 | Form No. 4 | Income attributable to assets located in India under Section 9(10)(a) |
| 5 | Form No. 5 | Preliminary expenses statement under Section 44(3) |
| 6 | Form No. 6 | Audit Report under Section 44(6)/51(7) of Income Tax Act 2025 |
| 7 | Form No. 7 | Application for scientific research programme under Section 45(3)(c) |
Where to Find Complete Lists
The complete list of all 190 proposed forms and 333 proposed rules can be downloaded from www.incometaxindia.gov.in. Look for the link titled "Draft Income-Tax Rules & Forms, 2026" under the notifications section. The forms list is also accessible via the e-filing portal's feedback utility under the "Note" section.
Deadline & Important Dates
| Event | Date | Status |
|---|---|---|
| Income Tax Act 2025 — Presidential Assent | August 2025 | ✓ Completed |
| E-filing Portal Feedback Utility — Live | 4th February 2026 | ✓ Live Now |
| Draft Rules & Forms Uploaded on incometaxindia.gov.in | 7th February 2026 | ✓ Available |
| Deadline for Suggestions | 22nd February 2026 | ⏰ 8 Days Left |
| Income Tax Act 1961 — Repealed | 1st April 2026 | ⏳ Upcoming |
| New Income Tax Rules 2026 — Effective | 1st April 2026 | ⏳ Upcoming |
Tips for Writing Effective Suggestions
Since each feedback field has a 500-character limit and CBDT will be reviewing thousands of submissions, the quality and specificity of your suggestion matters far more than its length. Here are practical tips to make your feedback count.
Be specific about the provision. Always mention the exact rule number, sub-rule, clause, or form number from the proposed draft (not the old 1962 rules). For example, write "Form No. 6 — Audit Report under Section 44(6)/51(7)" rather than just "audit form."
Explain the problem clearly. Don't just say "this is confusing." Explain what exactly is ambiguous and how it could be misinterpreted. If you've seen a similar provision cause litigation in the past under the old Act, mention that context briefly.
Suggest a concrete solution. Rather than just pointing out a problem, propose how the language should be changed, what threshold should be revised, or which form field should be removed. CBDT is more likely to act on suggestions that come with actionable recommendations.
Use plain language. Even though you're writing to tax authorities, clear and simple writing will make your point more effectively than jargon-heavy feedback.
Submit multiple responses. The portal allows you to submit feedback for different forms and rules separately. If you have suggestions on multiple provisions, submit each one individually with the specific form/rule number. This makes it easier for CBDT to categorize and act on your feedback.
Frequently Asked Questions
What are the Draft Income Tax Rules & Forms 2026?
The Draft Income Tax Rules 2026 and Draft Income Tax Forms 2026 are the proposed rules and forms framed under the new Income Tax Act 2025, which replaces the Income Tax Act 1961 from 1st April 2026. The draft reduces rules from 511 to 333 and forms from 399 to 190. They have been released for public comment before final notification by CBDT.
How can I submit my suggestions on the proposed rules?
Visit the e-filing portal utility at eportal.incometax.gov.in (direct link provided in this article). Enter your name and mobile number, verify via OTP, select "Forms" or "Rules," enter the specific form/rule number from the proposed draft, and type your suggestions in the relevant category fields. No login or e-filing account is required — any Indian citizen can submit feedback.
What is the last date to submit suggestions?
Feedback on the draft rules and forms is accepted until 22nd February 2026. The feedback utility has been live on the e-filing portal since 4th February 2026. After the deadline, CBDT will compile all suggestions and consider them before issuing the final notification of the Income Tax Rules 2026.
Do I need an e-filing account to submit feedback?
No. The feedback utility is a pre-login public utility accessible to everyone. You only need to provide your name and a valid Indian mobile number for OTP verification. You do not need PAN, Aadhaar, or an e-filing login. This means even citizens who have never filed a tax return can participate and share their views.
What are the four feedback categories?
CBDT has structured the feedback around four categories: (1) Simplification of Language — making rules and forms easier to understand, (2) Litigation Reduction — identifying provisions likely to cause disputes, (3) Obsolete Provisions — flagging outdated or redundant rules and forms for removal, and (4) Compliance Reduction — streamlining documentation and procedural requirements. You must fill at least one category (500 characters max each).
When will the new Income Tax Act 2025 come into effect?
The Income Tax Act 2025 received Presidential assent in August 2025 and will come into effect from 1st April 2026. On the same date, the Income Tax Act 1961 stands officially repealed (as per Section 536 of the new Act). The corresponding Income Tax Rules 2026 and new forms will also take effect from 1st April 2026.
Where can I download the full Draft Income Tax Rules 2026?
The complete draft can be downloaded from the official website www.incometaxindia.gov.in. Look for the PDF titled "Draft Income-Tax Rules, 2026" under the notifications or downloads section. The draft forms list is also available on the same website. Links to navigate rules and forms are also provided within the e-filing portal's feedback utility.