Government Proposes Draft Rules to Simplify Choice Between Old and New Income Tax Regimes

The Indian government has proposed Draft Income Tax Rules, 2026, to simplify tax filing under the new Income Tax Act, 2025, effective April 1, 2026. Key changes include allowing taxpayers to choose between old and new tax regimes directly within their income tax returns, eliminating the need for separate forms. The draft also revises exemptions and allowances, potentially making the old regime more attractive. These measures aim to reduce compliance complexity and provide clearer options for taxpayers.