CBDT seeks stakeholders' inputs on proposed Income-tax Rules and Forms related to Income Tax Act, 2025

1. At a Glance

CBDT (Central Board of Direct Taxes), under the Department of Revenue, Ministry of Finance, has launched a stakeholder-consultation utility on the e-filing portal (incometaxindia.gov.in) inviting suggestions on the draft Rules and Forms under the Income-tax Act, 2025 [S1][S2].
Significant because it operationalises India's first wholesale rewrite of direct-tax law since 1961, effective 1 April 2026 [S3][S5].
UPSC angle: tests GS-II (governance/consultation) + GS-III (taxation, fiscal policy, ease of compliance).

8 February 2026 PIB release: CBDT opened a utility on the e-filing portal seeking inputs in four categories before final notification of Rules/Forms; OTP-validated submission via name + mobile [S1].
Follows the Income-tax Act, 2025 receiving Presidential assent in August 2025 and notified to come into force from 1 April 2026 [S1][S3].

July 2024: FM Nirmala Sitharaman (Union Budget 2024-25) announced comprehensive review of the Income-tax Act, 1961 [S6].
October 2024: CBDT formed an internal committee and invited public/stakeholder suggestions on the e-filing portal [S2].
February 2025: Income-tax Bill, 2025 tabled in Lok Sabha; referred to Select Committee chaired by Baijayant Panda [S6].
11 August 2025: Income-tax (No.2) Bill, 2025 introduced incorporating Select Committee recommendations; original Bill withdrawn [S6].
August 2025: Presidential assent — Income-tax Act, 2025 (Act No. 30 of 2025) [S4][S5].
8 February 2026: CBDT opens stakeholder utility on draft Rules & Forms [S1].
1 April 2026: Act comes into force [S3][S5].

Parent body: CBDT, constituted under the Central Boards of Revenue Act, 1963; functions under Department of Revenue, Ministry of Finance [S1].
Enabling statute: Income-tax Act, 2025 (Act 30 of 2025) — replaces the Income-tax Act, 1961 [S4][S6].
Commencement: 1 April 2026; income up to FY 2025-26 governed by 1961 Act (AY 2026-27); income from 1 April 2026 onward under 2025 Act (Tax Year 2026-27) [S3].
Key conceptual shift: introduces unified "Tax Year" replacing "Assessment Year" and "Previous Year" [S3].
Defines Virtual Digital Assets (VDAs) including cryptocurrencies and tokenised assets [S3].
Policy continuity: tax rates and regimes for individuals/corporates unchanged; objective is language simplification + removing redundancies [S6].
Consultation channel: e-filing portal utility, four categories of inputs, OTP-based validation [S1].

Legal / Constitutional: Direct tax falls under Union List Entry 82 (taxes on income other than agricultural income); Rules are subordinate legislation made by CBDT under the parent Act [S5].
Administrative / Governance: Pre-notification consultation reflects participatory rule-making — aligns with Pre-Legislative Consultation Policy, 2014; aims to reduce post-enactment litigation [S1][S6].
Economic: Simpler Rules/Forms intended to cut compliance costs, widen voluntary compliance, and improve India's ranking on tax-administration ease [S6].
Technological: Entirely e-filing-portal driven; OTP authentication signals continued digital-by-default tax administration [S1].
Ethical / Transparency: Public consultation on subordinate legislation is rare in tax law — sets a precedent for accountability in CBDT rule-making [S2].

Oct 2024: CBDT review committee + first round of stakeholder suggestions [S2].
Feb 2025: Income-tax Bill, 2025 introduced; sent to Select Committee [S6].
Aug 2025: Income-tax (No.2) Bill, 2025 passed; Presidential assent [S4][S6].
Sept 2025: PIB explainer "The Income Tax Act, 2025 — Reshaping Tax Framework" published [S4].
Feb 2026: CBDT stakeholder utility on draft Rules & Forms launched [S1].
1 April 2026: Act commences; PRARAMBH 2026 nationwide awareness campaign launched by FM [S3][S7].

Income-tax Act, 2025 is Act No. 30 of 2025 [S4].
Receives Presidential assent in August 2025; effective 1 April 2026 [S3][S5].
Introduces unified "Tax Year" replacing Assessment Year + Previous Year [S3].
Defines Virtual Digital Assets (VDAs) statutorily [S3].
Select Committee on the Bill chaired by Baijayant Panda [S6].
Original Income-tax Bill, 2025 (Feb 2025) was withdrawn; replaced by Income-tax (No.2) Bill, 2025 (11 Aug 2025) [S6].
CBDT functions under Department of Revenue, Ministry of Finance [S1].
Stakeholder utility hosted on incometaxindia.gov.in e-filing portal, four categories of inputs [S1].
Awareness campaign on the new Act named PRARAMBH 2026 [S7].
Tax rates and regimes unchanged by the 2025 Act [S6].
Comprehensive review announced by FM in July 2024 Budget speech [S6].

GS-II: Government Policies & Interventions; Pre-legislative/subordinate consultation; Statutory bodies (CBDT).
GS-III: Indian Economy — Mobilisation of Resources; Direct tax reforms; Ease of compliance.
Possible question stems:
"The Income-tax Act, 2025 is more an exercise in simplification than reform. Critically examine."
"Pre-notification stakeholder consultation on subordinate legislation strengthens democratic rule-making. Discuss in light of CBDT's 2026 initiative."
"Examine how concepts like 'Tax Year' and statutory recognition of Virtual Digital Assets modernise India's direct tax framework."

Direct Tax Code (DTC) proposals (2009, 2013) — predecessors of simplification effort.
Finance Act, 2026 — amends the new Act [S4].
Faceless Assessment Scheme — companion administrative reform.
Virtual Digital Assets taxation (Section 115BBH, 1961 Act) — antecedent.
GST Council & GST reforms — comparator for tax simplification.
Pre-Legislative Consultation Policy, 2014 — governance baseline.
Article 265 & Union List Entry 82 — constitutional basis of income tax.
Tax Administration Reform Commission (TARC), 2014 — Parthasarathi Shome.

Confusing Income-tax Bill, 2025 (Feb 2025, withdrawn) with Income-tax (No.2) Bill, 2025 (Aug 2025, enacted) [S6].
Assuming the Act changes tax rates — it does not [S6].
Misattributing the Act to Ministry of Corporate Affairs — it is Ministry of Finance / Department of Revenue / CBDT [S1].
Confusing the commencement date — 1 April 2026, not the date of assent (Aug 2025) [S3].
Treating "Tax Year" as merely renamed Assessment Year — it consolidates Previous Year + Assessment Year into one [S3].

[S1] CBDT seeks stakeholders' inputs on proposed Income-tax Rules and Forms — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2225061 — (tier 1)
[S2] CBDT forms internal committee to review Income-tax Act — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2062861 — (tier 1)
[S3] Income-tax Act, 2025 comes into force from 1st April 2026 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2248005 — (tier 1)
[S4] Income-tax Act, 2025 as amended by Finance Act, 2026 (PDF) — https://www.incometaxindia.gov.in/documents/d/guest/income_tax_act_2025_as_amended_by_fa_act_2026-pdf — (tier 1)
[S5] The Income Tax Act, 2025 — Act to come into effect from 1st April 2026 — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2221416 — (tier 1)
[S6] The Income-Tax (No.2) Bill, 2025 — PRS Legislative Brief — https://prsindia.org/billtrack/the-income-tax-no2-bill-2025 — (tier 1)
[S7] PRARAMBH 2026 awareness campaign launched by FM — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2243196 — (tier 1)