The Government of India has released the Draft Income-Tax Rules 2026, proposing important changes that affect taxpayers, professionals, and businesses. These updates focus on digitalization, easier compliance, and more transparency in financial transactions. Knowing these rules is essential to avoid tax fines and ensure smooth filing.
Digital Books of Account (Mandatory)
Draft Rule 46 makes it compulsory for professionals to maintain digital books of account. These records must be:
- Kept in electronic format
- Accessible in India at all times
- Backed up on India-based servers
- Updated daily for accuracy
This move is designed to simplify audits, reduce errors, and make compliance easier. Professionals such as doctors, lawyers, engineers, and consultants should shift to digital accounting systems to meet these requirements.
New PAN Quoting Threshold
Draft Rule 159 changes the rules for quoting PAN. Now, PAN is required only for transactions involving the sale or purchase of motor vehicles worth more than ₹5 lakh. This reduces reporting for smaller transactions while ensuring transparency for high-value deals.
Higher Reporting Thresholds for Property
Draft Rule 237 raises the reporting threshold for property transactions. The limit has increased from ₹30 lakh to ₹45 lakh for purchase, sale, gift, or joint development of immovable property. This change cuts down unnecessary reporting for smaller property deals and focuses on larger transactions.
Addition of CBDC in Payment Modes
Rule 48 introduces a new category for reporting Central Bank Digital Currency (CBDC) transactions. This includes:
- P-CBDC Full-KYC Digital Rupee wallets
- Cross-border and wholesale CBDC transactions
This highlights India’s commitment to digital finance and shows ongoing regulatory attention to new payment technologies.
Takeaways for Taxpayers and Professionals
The Draft Income-Tax Rules 2026 emphasize:
- Digital record keeping for real-time access
- Easier PAN and property transaction reporting
- Integration of new financial technologies like CBDC
For taxpayers, businesses, and professionals, these changes mean fewer hassles, better transparency, and a stronger push toward digital compliance. Staying updated will help avoid risks and take advantage of India’s evolving tax ecosystem.
The new rules show India’s effort to modernize its tax system while balancing compliance with convenience. By focusing on digitalization, simplified reporting, and financial technology, the government aims to create a more transparent and efficient tax environment for everyone.
