I-T Dept Proposes Simpler Tax Regime Choice in Draft Rules 2026

• Income Tax Department proposes draft rules for 2026 to simplify choosing between old and new tax regimes.
• Taxpayers can now select or withdraw their tax regime option directly in their income tax return form, eliminating separate declarations.
• Currently, taxpayers with business/professional income must file Form 10-IEA to opt for the old regime; this will be removed.
• The change aims to reduce compliance duplication and bring uniformity across all taxpayer categories.
• The draft rules are expected to be finalized and implemented with the new Income Tax Act, 2025.