Rationalisation of long-standing perquisite thresholds and a sharper definition of who qualifies as an ‘Accountant’ for certification purposes are among the key changes reflected in the draft Income-tax Rules and Forms released by the Central Board of Direct Taxes (CBDT) under the Income-tax Act, 2025.
The draft Rules indicate revisions in archaic limits such as tax-free at-work meal value and gifts received from employers, bringing them closer to present-day economic realities. Another significant change is in the definition of ‘Accountant’ for various certifications under the new law. The revised definition proposes that only individual professionals with at least 10 years of experience and annual receipts exceeding Rs 50 lakh in the preceding year would qualify. In the case of partners in firms engaged in accountancy or valuation services, the firm’s annual receipts in the preceding year must exceed Rs 3 crore.
These changes are part of the proposed Income-tax Rules and related Forms framed under the Income-tax Act, 2025, which will come into force from April 1, 2026.
As part of a wider consultative exercise before final notification, the draft Rules and Forms have been uploaded on the official Income Tax Department website. The tax administration has also launched a dedicated utility on the e-filing portal to collect structured feedback from taxpayers, professionals and other stakeholders.
The Income-tax Act, 2025 received Presidential assent in August 2025 and will replace the existing framework from the next financial year.
According to the Finance Ministry, the proposed Rules and Forms have been prepared after broad-based consultations to ensure alignment with the provisions of the new law. Stakeholders have been encouraged to examine the drafts and submit suggestions, which will be reviewed before finalisation.
CBDT has invited inputs in four specific areas — simplification of language, reduction of litigation, reduction of compliance burden, and identification of redundant or obsolete Rules and Forms.
The feedback can be submitted through a link available on the e-filing portal, which has been live since February 4. Users can access the facility after OTP-based verification using their name and mobile number.
The Board has asked stakeholders to clearly mention the relevant provision of the proposed Rules or the specific Form number, rule or sub-rule to which the suggestion relates, while categorising it under the four identified themes.
Commenting on the move, Sandeepp Jhunjhunwala, Partner at Nangia Global, said, “The decision to release the draft rules well in advance for public consultation reflects a commendable commitment to participatory governance. Equally noteworthy is the long-overdue rationalisation of archaic perquisite thresholds, such as tax-free at-work meal value, gift received from employer, etc — a reform that has been widely sought and brings the income tax framework closer in line with contemporary economic realities. Together, these measures signal a thoughtful and forward-looking approach to legislative implementation.”
He further noted that the revised definition of ‘Accountant’ marks a significant shift in certification norms under the new law.