The changes will come into effect from April 1, 2026.
The notification, issued by the Ministry of Finance, introduces modifications to sub-rule (1)(d) and sub-rule (2) of Rule 128.
Under the revised sub-rule (1)(d), income arising or deemed to arise, or received or deemed to be received, from the transfer of investments made before April 1, 2017, has been explicitly covered.
Further, the amended sub-rule (2) clarifies that provisions of Chapter XI will apply to any arrangement, regardless of when it was entered into, in relation to tax benefits obtained on or after April 1, 2017. However, an exception has been carved out for income arising from the transfer of investments made prior to April 1, 2017.
The amendment has been issued under the powers conferred by Sections 183 and 533 of the Income-tax Act, 2025.
The Income-tax Rules, 2026 were originally published in the Gazette of India on March 20, 2026.
First Published: Apr 1, 2026 2:00 PM IST
