MM TAX CLUB

In an important step towards participative law-making, the Central Board of Direct Taxes (CBDT) has invited inputs and suggestions from stakeholders on the proposed Income-tax Rules and Forms framed under the Income-tax Act, 2025.

The Income-tax Act, 2025 received the assent of the President in August 2025 and is scheduled to come into force from 1st April 2026. Before finalising the supporting Rules and Forms, CBDT has opened the door for public consultation to ensure clarity, simplicity, and reduced compliance burden.

What is this consultation about?

As part of a wider consultative process, CBDT has uploaded the proposed Income-tax Rules and related Forms on its official website. These drafts have been prepared after broad-based discussions and are aligned with the provisions of the new Income-tax Act, 2025.

Now, taxpayers, professionals, and other stakeholders are encouraged to review these drafts and share their suggestions before the Rules and Forms are formally notified.

Four key areas where inputs are invited

CBDT is specifically seeking suggestions under the following four categories:

1. Simplification of Language
   To make tax provisions easier to understand for taxpayers and professionals.

2. Reduction of Litigation
   Suggestions that can help avoid ambiguity and future disputes.

3. Reduction of Compliance Burden
   Ideas to simplify procedures, forms, and reporting requirements.

4. Identification of Redundant or Obsolete Rules & Forms
   Removal of provisions that are no longer relevant or useful.

How to submit suggestions?

To make the process smooth and accessible, CBDT has launched a dedicated utility on the Income-tax e-filing portal.

• The facility is live from 04.02.2026

• Accessible to all stakeholders

• Requires basic details such as name and mobile number

• Submission is completed through OTP-based validation

While submitting suggestions, stakeholders must clearly mention:

• The relevant rule, sub-rule, or Form number

• The specific category (out of the four mentioned above) to which the suggestion relates

Why this matters

This initiative reflects CBDT’s intent to build a simpler, more transparent, and taxpayer-friendly income-tax framework. Inputs from practitioners and taxpayers can play a crucial role in shaping practical and effective Rules before they become law.

For tax professionals, this is also an opportunity to flag real-world issues faced during compliance and reporting.