India Tax Agency Seeks Comments on Draft Income Tax Rules, 2026

The Indian Central Board of Direct Taxes Feb. 8 opened a consultation on draft Income Tax Rules, 2026 and forms, related to Income Tax Act, 2025, which enter into force April 1. The rules include measures to clarify: 1) approval of expenditures for credits and incentives, including for scientific research; 2) calculations related to income, including for salary income, gross total income, and depreciation; 3) exemptions, including for medical benefits; 4) recordkeeping requirements, and qualification for foreign tax credits; 5) the arm’s length price for transfer pricing, and safe harbors for eligible international transactions; and 6) due diligence requirements for ...