CBDT seeks stakeholders' inputs on proposed Income-tax Rules and Forms

Current Context: On February 8, 2026, the CBDT invited public feedback on draft Income‑tax Rules, 2026 and forms to operationalize the Income‑tax Act, 2025 (effective April 1, 2026).

• Objectives: simplify legal language, reduce litigation, ease compliance, and remove redundancies.
• Structural overhaul: Rules reduced from 511 → 333, Forms from 399 → 190, with new serial numbering system.
• Introduction of Smart Forms: automated reconciliation, prefill using AIS/TIS, and standardized sections.
• Proposed PAN threshold changes: cash deposits ₹10 lakh/year, property deals ₹20 lakh, vehicle purchases ₹5 lakh, hotel bills ₹1 lakh.
• Significance: Marks a modernized, digital‑first tax regime, replacing the 64‑year‑old Income‑tax Act, 1961.

Question:

Q.1 Which systemic reform has been introduced to improve clarity and navigation within the Income-tax Rules, 2026?
a) Zonal classification of rules
b) Subject-wise grouping of forms
c) Revised serial numbering system
d) Annual sunset review mechanism

Answer: c) A new serial numbering system has been introduced for better usability.