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.