BREAKING: Govt Notifies New Income Tax Rules 2026; Effective from April 01, 2026:

The Government of India has notified the new Income Tax Rules 2026, introducing simplified compliance and major reforms effective from April 1, 2026.

New Income Tax Rules 2026 Come Into Force Soon

Saloni Kumari

Mar 20, 2026

Last update on Mar 20, 2026

BREAKING: Govt Notifies New Income Tax Rules 2026; Effective from April 01, 2026 The Central Board of Direct Taxes (CBDT) under the Ministry of Finance (Department of Revenue) has issued an official notification [G.S.R. 198(E)], dated March 20, 2026, informing the public that the Government of India has completed developing the new Income-tax Rules, 2026. These new rules are scheduled to take effect from April 01, 2026, for the Financial Year 2026-27 (Assessment Year 2027-28). The government has formed these rules in exercise of its powers granted under Section 533 of the Income-tax Act, 2025 (30 of 2025). These revisions in the income tax rules will simplify tax compliance, update perquisite valuations, update tax filing due dates, replace the about 60-year-old Income Tax Act 1961, and do much more. Key changes to income tax rules Applicable from 1st April 2026 1. Child education allowance: 3,000/ month (earlier 100) 2. Hostel Allowance: 9,000/ month (earlier 300) 3. Free meal upto Rs. 200 per meal is exempt 4. Form 130 to replace form 16 5. HRA - Mandatory disclosure of landlords PAN Refer to the official notification for complete information.

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Saloni Kumari

Content Writer

Saloni is a Content Writer with 2+ years of experience at studycafe.in. She writes legal, taxation, and finance related content including GST, Income Tax etc. Skilled in translating complex judicial pronouncements and regulatory developments into clear, and reader-friendly articles. Experienced in covering judgements of ITAT, High Court, GSTAT, and news related to Income Tax, GST, and corporate law. She can be reached at [email protected].