From Stock Exchanges to Salaries: Major Changes in Income Tax Rules 2026

The government has introduced the Income Tax Rules, 2026, which will start from 1st April. These new rules are meant to make the tax system easier to follow while also ensuring people and companies share more accurate information.

The Income Tax Rules, 2026, replace older procedures under the Income-tax Act, 2025. They bring updated definitions, better reporting systems, and clearer compliance requirements.

The government stated that stock exchanges will face stricter rules. Stock exchanges must now maintain detailed records of transactions for seven years and cannot delete them. Apart from this, they will also need to send monthly reports about any changes made to transactions to improve transparency and prevent manipulation.

The new rules also give extra power to tax authorities in handling cross-border taxation. When a non-resident’s income is unclear or reduced, authorities can estimate it using methods like profit percentages or global ratios. This helps ensure fair taxation even in complex international cases.

There are also clearer guidelines for complicated financial matters. This includes debenture conversions, asset disclosure schemes, and cross-border restructuring. For zero-coupon bonds, stricter rules have been introduced. Companies must apply three months in advance, get ratings from two different agencies, and clearly state how the funds will be used.

For employees receiving housing from their employers, tax exemptions will now depend on factors such as the city’s population, the employee’s salary, and whether the house is owned or rented by the employer.