Draft Income Tax Rules 2026: Big Changes for Taxes and Transactions Revealed

• CBDT releases draft Income-tax Rules, 2026, detailing implementation of Income-tax Act, 2025 from April 1, 2026.
• PAN rules relaxed for routine transactions (cash deposits, vehicle purchases, property) but tightened for all life insurance premiums.
• Employer-provided car perks to attract higher tax; tax-free limits for meals, gifts, and staff loans significantly increased.
• Children's education and hostel allowances hiked substantially; HRA exemption expanded to include Bengaluru, Hyderabad, Pune, Ahmedabad.
• Stricter filing norms, digital notices, and mandatory CA certification for foreign tax credit over ₹1 lakh introduced.