The new Income Tax rules and tax forms announced by Finance Minister Nirmala Sitharaman will be notified by the first week of March, Central Board of Direct Taxes (CBDT) sources said on Monday.
Additionally, draft rules and forms were uploaded on the CBDT website on Feb. 7, and suggestions have been sought from stakeholders within two weeks.The new rules will come into effect from April 1 onwards.
All income tax forms, including form 16 will undergo a complete re-engineering, the sources added.
The new rules have also rationalised employee perquisites by revising thresholds for tax-free office meals, gifts received from employers, employer-provided educational facilities for employees' family members, and the use of motor vehicles provided by employers.
These limits had remained unchanged for decades despite rising incomes and costs. Their revision seeks to align the taxation of salary benefits with current economic conditions and ensure a more accurate computation of taxable income.
At the same time, the new rules tighten disclosure and reporting requirements for crypto assets, reflecting concern over the growing use of digital assets for tax evasion, regulatory arbitrage and opaque cross-border transactions. For the first time, the rules prescribe detailed reporting and due-diligence obligations for crypto-asset service providers, including exchanges and intermediaries.
Crypto-asset service providers are required to start furnishing prescribed information from FY27. Moreover, crypto platforms must follow structured procedures for information collection, verification, ongoing due diligence and reporting of transactions to tax authorities. The objective is to improve the traceability of virtual digital asset transactions—crypto-based assets notified under tax law—close data gaps and strengthen enforcement without imposing blanket restrictions on the sector.
So far, around 12 crore individuals paid income tax, of which nine crore have filed income tax returns. The Tax Depatrment is nudging the remaining 3 crore taxpayers through emails and reminders to file returns.
According to the sources, data indicates expansipn of the tax net since around 1.1 crore are first-time return filers.
ALSO READ: Income Tax Rules Revised: Perk Limits Raised, Crypto Reporting Toughened
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