Draft Rule 59 of the Income-tax Rules, 2026 prescribes a formula-based method to compute taxable income from life insurance payouts under Section 92(2)(l), ensuring premiums already claimed as deductions are not reduced again.
Draft Rule 58 of the Income-tax Rules, 2026 excludes certain asset transfers from Sections 92(3)(i) and 79 where specified restructuring, regularisation, or disinvestment conditions are fulfilled.
Rule 57 of the Draft Income-tax Rules, 2026 prescribes specific methods for determining Fair Market Value of jewellery, shares, artistic works, and immovable property to ensure standardized and transparent valuation.
Draft Rules 54 to 56 require accountant certification for slump sales and fix a 15% or Rs.10 lakh threshold for reference to Valuation Officers. They also define key FMV terms, including balance sheet, merchant banker, securities, and valuation date for specific sections.
Draft Rule 53 mandates that fair market value (FMV) for slump sale under Section 77 be the higher of asset-based FMV or consideration-based FMV. The rule introduces detailed formulas to prevent undervaluation and ensure accurate capital gains taxation.
Rule 51 limits Indian resident participation in original funds to 5% for specific AIF transfers, while Rule 52 standardises exchange rates for non-residents computing capital gains under Section 72.
Draft Rule 50 provides a formula-based mechanism to attribute income taxed under Section 67(10) to capital assets retained by a specified entity under Section 72(5). It also restricts depreciation on revalued or self-generated assets and mandates Form 27 compliance.
Draft Rule 49 prescribes a formula-based method to compute capital gains on amounts received from specified ULIPs under Section 67(5), treating them as equity-oriented fund units. The rule ensures proportionate taxation of withdrawals and bonuses after adjusting premiums already considered.
Rule 47 mandates Form 26 for audit reports under Section 63 with provision for revision in specified cases, while Rule 48 specifies approved electronic payment modes including UPI, NEFT, RTGS and CBDC wallets.
Draft Income-tax Rules 2026 Rule 46 mandates detailed books, Form 25 for doctors, ₹1.5 lakh threshold relief, 7-year retention, and India-based electronic storage compliance.
