NEW DELHI: Rationalisation of long-standing perquisite thresholds and a clearer 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The draft Rules propose revisions to outdated limits such as tax-free at-work meals and gifts received from employers, aligning them more closely with present-day economic realities. Another significant change is the definition of ‘Accountant’ for certifications under the new law. The revised rules specify that only individual professionals with at least 10 years of experience and annual receipts exceeding Rs 50 lakh in the preceding year would qualify. For partners in firms providing accountancy or valuation services, the firm’s annual receipts in the preceding year must exceed Rs 3 crore.
These changes form part of the proposed Income-tax Rules and related Forms under the Income-tax Act, 2025, which will come into force from 1 April 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. A dedicated utility on the e-filing portal has also been launched 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 are 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, lowering the compliance burden, and identification of redundant or obsolete Rules and Forms. Feedback can be submitted via a link on the e-filing portal, which has been live since 4 February. Users must verify their identity using OTP-based verification with their name and mobile number.
The Board has requested that stakeholders clearly mention the relevant provision of the proposed Rules or the specific Form, 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 meals and gifts from employers, a reform widely sought and one that brings the income tax framework closer to 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.
The draft Rules and Forms are available for public viewing on the Income Tax Department’s website.