Central Board of Direct Taxes, Notification No. 22/2026 [G.S.R. 198(E)], Income Tax Rules, 2026, New Delhi

(dated 20th March 2026) The CBDT, in exercise of powers conferred by Section 533 of the Income-tax Act, 2025, notified the Income-tax Rules, 2026, to come into force with effect from 1st April 2026. The Rules constitute the comprehensive procedural framework under the new Act and cover, inter alia, arrangements for declaration and payment of dividends, conditions and procedures for recognition of stock exchanges, determination of the period of holding of capital assets, procedure for notification of zero coupon bonds, and attribution of income to non-residents.

The Rules essentially carry forward and consolidate the operational provisions of the Income-tax Rules, 1962, without introducing substantive changes to tax policy. Notably, Rule 13 expressly prescribes the thresholds for Significant Economic Presence of non-residents, fixing the payment threshold at Rs. 2 crore and the user engagement threshold at 3,00,000 users.

Rule 44 introduces specific conditions for non-residents engaged in the business of operation of cruise ships to avail the concessional taxation regime under the new Act. The Income Tax Rules, 1962 shall continue to govern all periods and proceedings arising under the Income-tax Act, 1961, which remains in force for all periods prior to 1st April 2026.