Overview
- The Draft Income-tax Rules, 2026 operationalise the Income-tax Act, 2025 and are open for stakeholder feedback until February 22 before being finalised.
- PAN quoting would shift to annual aggregates for cash flows, requiring PAN once deposits or withdrawals reach Rs 10 lakh in a year across accounts.
- The draft raises PAN triggers to Rs 20 lakh for immovable property (including gifts and joint development agreements), to Rs 5 lakh for vehicle purchases including two‑wheelers, and to Rs 1 lakh for hotel, restaurant and event payments.
- Insurance compliance would expand from premium thresholds to any account-based relationship with insurers, while crypto exchanges face tighter reporting and the digital rupee (CBDC) is recognised as a valid payment mode.
- A broad renumbering and consolidation of forms is proposed, including Form 16 to Form 130, Form 26AS to Form 168, and merging audit reports into a single Form 26, with updated TDS/TCS return numbers.