New Delhi. A big change is about to come for taxpayers across the country. The Central Board of Direct Taxes has notified new income tax rules, which will come into effect from April 1, 2026. These rules have been made under the Income Tax Act 2025, which aims to make the tax system easy and transparent.
New tax system in simple language
The new law will replace the old Income Tax Act 1961, which was nearly 60 years old. No new tax rate has been implemented in this, but complex provisions and difficult language have been simplified. It is worth noting that the number of sections has been reduced from 819 to 536 and chapters have been reduced from 47 to 23. This will make it easier for common people to understand the law.
What is the new rule on HRA?
The exemption related to House Rent Allowance (HRA) for salaried employees will continue, but some new provisions have been added to it. People living in big cities like Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru will be able to take HRA exemption up to 50% of their salary, whereas in other cities this limit will remain only 40%.
Now you will have to give complete details of the landlord
Under the new rules, to avail HRA exemption, the tenant will have to make full disclosure of his relationship with his landlord. Its objective is to prevent fraudulent claims and increase transparency in the tax system.
Strictness on investment and transactions
In the new rules, rules regarding capital gains, stock market transactions and non-resident taxation have been made more stringent. Besides, efforts have also been made to simplify tax related forms and procedures. More than 150 new forms have been introduced.
Increased audit and accountability
Now the responsibility of tax audit professionals and companies has also been increased. Strict monitoring will be done in matters like tax credit on foreign income, duplication of PAN and audit irregularities.
What will be the impact on the common man?
These changes can have a direct impact on the pockets of common taxpayers. While on one hand, simplifying the rules will make it easier to file taxes, on the other hand, increasing the strictness may also increase the problem of giving wrong information.
Comments are closed.