CBDT notifies rules for simplified I-T law, to be effective from April 1

I-T Rules, 2026 will operationalise simplified direct tax legislation that was passed by Parliament last year & will come into effect from April 1

- OUR CORRESPONDENT

The Central Board of Direct Taxes on Friday notified the rules for Income-tax Act, 2025 which provided enhanced tax benefit for HRA to salary earner but makes disclosure of landlord-tenant relationship mandatory.

The Income-tax Rules, 2026 will operationalise the simplified direct tax legislation that was approved by Parliament last year and will come into effect from April 1.

“These rules may be called the Income-tax Rules, 2026. They shall come into force on the April 1, 2026,” a gazette notification said.

Income Tax Rules have significantly raised transaction limits for quoting of PAN for cash deposits/withdrawal in banks, purchase of motor vehicles & property, and payment of hotel bills.

It has also led to enhancing the value of perquisites provided by employers, and making it mandatory for crypto exchanges to share information with IT dept.

It also includes Central Bank Digital Currency (CBDC) as an accepted mode of electronic payment.