Blitz Bureau
NEW DELHI: The Government on March 20 notified the Income-tax Rules, 2026, setting the stage for the rollout of the new Income-tax Act, 2025 from April 1, 2026, with a sharper focus on transparency, stricter disclosures and improved compliance.
The Central Board of Direct Taxes (CBDT) has published the Income-tax Rules, 2026 in the e-Gazette, replacing earlier provisions and laying down a detailed framework for the upcoming financial year 2026-27. The new rules aim to simplify procedures while tightening reporting standards across key areas such as capital gains, stock market transactions and non-resident taxation.
The rules come after draft proposals released earlier this year and are part of a broader effort to modernise India’s tax system. “The changes do not introduce new taxes but instead focus on better monitoring and transparency through enhanced disclosures and digital tracking,” according to the official notification.
One of the key highlights is related to house rent allowance (HRA). The rules retain the existing structure, under which salaried employees in cities like Mumbai, Delhi, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad can claim up to 50 per cent of their salary as exemption.
For other cities, the limit remains at 40 per cent. However, taxpayers will now also need to disclose their relationship with the landlord in a specified form, adding a new layer of transparency. The rules also set stricter conditions for stock exchanges to qualify as recognised platforms for derivatives trading.
