Income Tax Updates

NOTIFICATION  |  CBDT  |  20 MARCH 2026

IT Rules 2026 Officially Gazetted — Full Rulebook for the New Tax Act Is Now Law

CBDT has notified the Income-tax Rules, 2026 vide Notification No. G.S.R. 198(E) dated 20 March 2026, exercising powers under Section 533 of the Income-tax Act, 2025. The rules come into force on 1 April 2026 and provide the complete procedural and operational framework for implementing the new Act. This is the rulebook that sits behind the legislation — everything from how capital gains holding periods are calculated to what forms must be filed and how.

Key areas covered: conditions for stock exchange recognition (SEBI-approved, 7-year transaction audit trail mandatory); method of determining holding period for capital assets in complex cases — conversions, foreign company restructuring, assets declared under past disclosure schemes; procedures for notifying zero coupon bonds (apply 3 months in advance, credit rating and listing conditions apply); rules for computing non-resident income from Indian sources; perquisite valuation under the new Act; and arrangements for dividend declaration — shareholder records must be maintained in India, meetings must be held domestically, and payments must be made within India. The Department has also released a "Navigator of IT Rules 2026" document to help professionals map old rules to new ones.

Sources: Gazette of India — G.S.R. 198(E), 20 March 2026  |  TaxGuru — CBDT notifies IT Rules 2026

PORTAL UPDATE  |  INCOME TAX DEPARTMENT  |  MARCH 2026

incometaxindia.gov.in Overhauled — New Calculators, Rule Utilities, and Transition FAQs Now Live

The Income Tax Department has significantly upgraded its official portal at incometaxindia.gov.in ahead of the 1 April go-live, making this the most practically useful portal update in years. The Tax Tools section now hosts a dedicated TDS Calculator updated for new section numbering under IT Act 2025, a Ready Reckoner for quick tax rate and slab reference, and a Tax Calendar with key compliance dates. Two new cross-reference utilities are especially useful for professionals: the Rule Utility 2026 maps every provision of the Income-tax Rules 1962 to its corresponding rule in IT Rules 2026 side-by-side, and the Form Utility 2026 maps every old form to its new equivalent. The full text of the IT Act 2025, IT Rules 2026, and all Income Tax Forms 2026 are directly accessible.

CBDT has also published a detailed FAQ document on the transition from the IT Act 1961 to the IT Act 2025. Key clarifications: no new taxes are introduced — the new Act is about simplification, not higher rates; pending assessments, appeals, and reassessments under the old Act continue to completion under the old Act; income earned up to 31 March 2026 is taxed under IT Act 1961, and income from 1 April 2026 falls under IT Act 2025 — there is no "missing year." Both acts run in parallel for their respective years. A separate FAQ on new Forms under IT Rules 2026 and Guidance Notes for each form are also available on the portal. All these resources are free, official, and accessible without login at incometaxindia.gov.in.

Sources: incometaxindia.gov.in — Tax Tools (direct)  |  CA Club India — CBDT transition FAQs, 22 March 2026

ORDER  |  CBDT  |  18 MARCH 2026

All IT Offices to Remain Open on 31 March 2026 Despite Mahavir Jayanti Holiday

CBDT has issued an order under Section 119 of the Income-tax Act, 1961 (F.No. 225/53/2024-ITA-II, dated 18 March 2026) directing that all Income Tax offices across India remain open on 31 March 2026. This year, 31 March — the last day of FY 2025-26 — falls on a declared closed holiday on account of Mahavir Jayanti. Without this order, the closure would have disrupted year-end assessments, filings, and other departmental work precisely at the most critical moment of the compliance calendar.

For taxpayers and professionals: IT offices will be fully operational on 31 March. Pending assessment orders can be passed, last-minute filings can be processed, and departmental correspondence will be accepted. This also matters for TDS/TCS correction statements — which are permanently time-barred from 1 April 2026 under Section 397(3) of IT Act 2025. If you have any outstanding correction work for FY 2018-19 (Q4) through FY 2023-24 (Q3), 31 March is your absolute last date — no extensions possible.

Sources: A2Z Taxcorp — CBDT order, 18 March 2026  |  TRACES portal — TDS correction deadline alert

MCA & Corporate Updates

NOTIFICATION  |  MCA  |  10 MARCH 2026

MCA Amends AS-22 for OECD Pillar Two — Companies Exempt From Deferred Tax on Global Minimum Tax

The Ministry of Corporate Affairs has notified the Companies (Accounting Standards) Amendment Rules, 2026 (Notification No. G.S.R. 169(E), 10 March 2026), amending Accounting Standard 22 — the standard governing income tax accounting. The amendment inserts a new Paragraph 2A into AS-22, bringing Pillar Two taxes within the scope of the standard while simultaneously exempting companies from recognising deferred tax assets or liabilities related to those taxes. This means companies do not need to calculate or book deferred tax on the OECD global minimum tax — a relief that removes considerable complexity from financial reporting.

Background: OECD's Pillar Two framework requires large multinational groups to calculate their effective tax rate in each country they operate in. If the rate falls below 15%, a top-up tax applies. India's amendment aligns AS-22 with this global framework. Companies must now disclose whether they have applied the deferred tax exemption, show current Pillar Two tax expense separately in their accounts, and — where Pillar Two legislation is enacted but not yet effective — disclose their exposure across jurisdictions and the expected impact on their effective tax rate. Small and medium-sized companies (SMCs) are exempt from the enhanced disclosure requirements. No Pillar Two interim disclosures are required for periods ending on or before 31 March 2026. Note: this amendment applies to companies under the AS framework; Ind AS companies were addressed separately in August 2025.

Sources: Business Standard — MCA aligns AS-22 with Pillar Two, 18 March 2026  |  Taxscan — MCA amends AS-22, G.S.R. 169(E)

KEY COMPLIANCE DEADLINES — MARCH–APRIL 2026

31 MARCH 2026 ⚠ TDS/TCS correction statements FY 2018-19 Q4 to FY 2023-24 Q3 — permanently time-barred from 1 April (Section 397(3), IT Act 2025)	31 MARCH 2026 ⚠ LUT (RFD-11) for FY 2026-27 · CMP-02 composition opt-in · Deactivated DIN reactivation · GST reconciliation for FY 2025-26
1 APRIL 2026 IT Act 2025 + IT Rules 2026 go live — new section numbering in force; IT Act 1961 repealed (Section 536)	6 APRIL 2026 Last date for public comments on RBI draft digital fraud compensation framework (₹25,000 cap proposal)
7 APRIL 2026 TDS/TCS deposit for March 2026 deductions	15 APRIL 2026 CCFS-2026 window opens — MCA one-time compliance facilitation scheme for pending annual filings
30 APRIL 2026 GST QRMP opt-in/opt-out window closes for April–June 2026 quarter	30 JUNE 2026 Director triennial KYC — all active DINs · CCFS-2026 window closes 15 July 2026

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