The government on Friday notified the Income-tax Rules, 2026, paving the way for the rollout of the new Income-tax Act, 2025, from April 1, 2026, and signalling a stronger emphasis on transparency, tighter disclosures and improved compliance. The Central Board of Direct Taxes (CBDT) has published the rules in the e-Gazette, replacing earlier provisions and setting out a detailed framework for the 2026-27 financial year.
The new rules aim to simplify procedures while tightening reporting standards across key areas including capital gains, stock market transactions and taxation of non-residents. They follow draft proposals released earlier this year and form part of a broader effort to modernise India’s tax system.
According to the official notification, “The changes do not introduce new taxes but instead focus on better monitoring and transparency through enhanced disclosures and digital tracking.”
On house rent allowance (HRA), the rules retain the current exemption structure: salaried employees in Mumbai, Delhi, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad may claim up to 50% of salary as an exemption, while the limit for other cities remains at 40%. A new transparency requirement mandates taxpayers to disclose their relationship with the landlord in a specified form.
For derivatives trading, the rules impose stricter conditions for stock exchanges to qualify as recognised platforms. Exchanges must obtain SEBI approval and maintain detailed transaction records, including client-level data such as PAN and unique identifiers. They are required to preserve audit trails for seven years and submit monthly reports to the tax department to strengthen oversight.
The notification also clarifies how holding periods will be calculated for capital gains: where securities are converted, the holding period will include the time the original asset was held. Different rules will apply for assets declared under the Income Declaration Scheme, 2016, depending on asset type.
Finally, the rules specify the treatment of capital gains for certain entities: gains linked to short-term assets or self-generated assets such as goodwill will be treated as short-term, while other gains will be classified as long-term based on the nature of the underlying asset. (IANS)
Original Source: https://www.sentinelassam.com/topheadlines/new-income-tax-rules-2026-announced-focus-on-stricter-disclosures-and-modernization
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Publish Date: 2026-03-21 08:23:00
