INCOME TAX RULES FOR 2026
From 1 April 2026, India's Income-tax Act, 2025 and the Income-tax Rules,2026 came into force, replacing the Income-tax Act, 1961. The new law mainly simplifies the structure and language while keeping most tax rates broadly unchanged.
Key Income Tax Rules for 2026 (India)
- ✔ New Income-tax Act, 2025
o Effective from 1 April 2026.
o Replaces the Income-tax Act, 1961.
o Introduces a Tax Year concept instead of separate "Previous Year" and
"Assessment Year."
- ✔ Tax Slabs
o Tax slab rates under the new regime remain broadly the same as previously
announced.
o The highest tax rate of 30% applies to taxable income exceeding ₹24
lakh under the new regime.
- ✔ Simplified Compliance
o Simpler language and reorganized provisions.
o Reduced litigation through clearer drafting.
o Greater emphasis on digital and faceless tax administration.
- ✔ Penalty Relief
o Genuine and minor mistakes receive more lenient treatment.
o Penalties and prosecution focus more on deliberate tax evasion than
inadvertent errors.
- ✔ Updated Rules
o Revised valuation of perquisites.
o Higher exemption limits for certain allowances.
o Revised PAN quoting requirements for specified transactions.
o Updated HRA and employee benefit provisions.
- ✔ ITR Filing Due Dates (AY 2026–27)
o 31 July 2026: Most salaried individuals and non-audit taxpayers.
o 31 August 2026: Taxpayers whose accounts require audit. Missing the due
date may attract interest and penalties
