Rule 333 of the Draft Income-tax Rules, 2026 mandates electronic payment of taxes to promote efficient and transparent tax compliance. Under this rule, all companies and any other persons to whom the provisions of section 63 apply must pay taxes electronically from the commencement of the rule. Electronic payment includes payment through internet banking facilities of authorised banks or by using credit or debit cards. For this purpose, the term “tax” carries the meaning assigned under section 2(106) of the Act and includes interest and penalties as well. Alongside this rule, the draft rules also provide detailed depreciation schedules in Appendix I and Appendix II, specifying the rates at which depreciation is admissible on various categories of assets. Appendix I prescribes depreciation on a written down value basis for tangible assets such as buildings, furniture, machinery and plant, and ships, as well as intangible assets including know-how, patents, copyrights, trademarks, licences, franchises, and similar business rights. For example, residential buildings generally attract a depreciation rate of 5%, non-residential buildings 10%, machinery and plant typically 15%, and certain specialised assets such as pollution control equipment, renewable energy devices, life-saving medical equipment, computers, and various industrial machinery may qualify for higher depreciation rates of up to 40%. Appendix II separately prescribes depreciation rates based on actual cost for assets used in power generation and related infrastructure, including generating stations, transformers, cooling towers, electrical systems, communication equipment, and other supporting installations. These provisions collectively aim to standardise tax payment mechanisms through digital methods and provide structured depreciation allowances for different categories of assets used in business and infrastructure activities.
Extract of Rule No. 333 of Draft Income-tax Rules, 2026
Rule 333
Electronic payment of tax.
(1) The following persons shall pay tax electronically on or after the date of commencement of this rule:—
(a) a company; and
(b) a person (other than a company), to whom the provisions of section 63 are applicable.
(2) For the purposes of this rule :—
(a) “pay tax electronically” shall mean, payment of tax by way of—
(i) internet banking facility of the authorised bank; or
(ii) credit or debit cards;
(b) the word “tax” shall have the meaning as assigned to it in section 2(106) of the Act and shall include interest and penalty.
