What replaced the Income-tax Rules, 1962?
G.S.R. 198(E) replaced the Income-tax Rules, 1962 from 1 April 2026. A credit or payment on or before 31 March 2026 still follows the old rules. Rule 218 keeps the old deposit dates.
In this guide
The Income-tax Rules, 1962 were replaced by the Income-tax Rules, 2026. Notification No. 22/2026, G.S.R. 198(E), came into force on 1 April 2026. A credit or payment on or before 31 March 2026 still follows the 1961 Act and the 1962 Rules. From 1 April 2026 the new rule numbers apply. Rule 218, which corresponds to old rule 30, keeps the TDS deposit dates: the 7th of the next month, and 30 April for a March deduction.
What replaced the 1962 Rules?
The Income-tax Rules, 2026 replaced the Income-tax Rules, 1962. Notification No. 22/2026, G.S.R. 198(E), dated 20 March 2026, notified the new rules. They came into force on 1 April 2026, with the Income-tax Act, 2025. The 1962 text is still the right citation for a credit or payment on or before 31 March 2026. It is the wrong citation for a deduction on or after 1 April 2026.
The 1962 Rules are not deleted from the record. They still govern an event whose credit or payment fell on or before 31 March 2026. What changed is the rule book for anything on or after 1 April 2026. The text of the new rules is the gazette PDF, not a blog summary of it.
Which events still use the 1962 Rules?
The earlier of credit or payment is the switch. The department's Tax Payments FAQ says a sum paid or credited on or before 31 March 2026 is governed by the Income-tax Act, 1961. A sum paid or credited on or after 1 April 2026 is governed by the Income-tax Act, 2025. The TDS FAQ uses the same test, and its example is a professional-fee credit in March 2026 with payment in April: the 1961 Act applies, and the deduction belongs to March.
| Earlier of credit or payment | Act | Rules |
|---|---|---|
| On or before 31 March 2026 | Income-tax Act, 1961 | Income-tax Rules, 1962 |
| On or after 1 April 2026 | Income-tax Act, 2025 | Income-tax Rules, 2026 |
Depositing the tax after 1 April 2026 does not move a March deduction into the new Act. The Tax Payments FAQ says the old challan still applies if the credit or payment was on or before 31 March 2026. A lower-deduction certificate under section 197 that was valid up to 31 March 2026 also stays with that March event, even if the deposit is later.
Does the TDS deposit date move?
No. The Tax Payments FAQ says rule 30 of the 1962 Rules is now rule 218 of the Income-tax Rules, 2026, and that rule 218 keeps the same timelines. A non-government deductor still deposits TDS by the 7th of the month after the month of deduction. A March deduction is still due by 30 April. The FAQ states that March 2026 TDS, for a non-government deductor, was due by 30 April 2026.
Two older exceptions also stayed. TDS under sections 194-IA, 194-IB, 194M and 194S of the 1961 Act, the challan-cum-statement cases, is still due 30 days from the end of the month of deduction. The FAQ says the 2026 Rules did not change that policy. Interest for a late deposit is still 1.5 percent per month or part of a month from deduction to payment, and 1 percent per month or part of a month where the tax was not deducted. For a new-Act default those rates sit in section 398(3)(a) of the Income-tax Act, 2025.
Which section number goes on a new deduction?
Not the 1961 number. The Tax Payments FAQ says sections 192 to 194T of the 1961 Act are consolidated in section 392 (salary) and section 393 (other payments) of the 2025 Act. Quoting section 194C for a contractor payment credited on or after 1 April 2026 can fail the return validation. The FAQ's example uses section 393(1), table serial 6(i), for that payment. TCS for a debit or receipt on or after 1 April 2026 is section 394.
Which old TDS forms became Form 141?
Four challan-cum-statements became one form, and only for an event on or after 1 April 2026. The TDS FAQ names them. Form 26QB was the purchase of immovable property. Form 26QC was rent paid by an individual or HUF. Form 26QD was a payment by an individual or HUF to a contractor or professional. Form 26QE was a transfer of a virtual digital asset. For a credit or payment on or after 1 April 2026, Form 141 is the common form for all four.
An event on or before 31 March 2026 still uses the old form. A flat whose credit fell on 28 March 2026 is a 26QB case even if the buyer pays the seller in April. A flat whose credit falls on 2 April 2026 is Form 141. The 30-day deposit clock from the end of the month did not move with the form number.
What happened to Form 26AS and AIS?
The Annual Information Statement continues for periods governed by the 1961 Act, up to assessment year 2026-27. From tax year 2026-27 the Tax Payments FAQ says it is replaced by Form 168. A deductee looking for credit on a March 2026 deduction looks in the AIS for assessment year 2026-27, even if the deductor deposited the tax after 1 April 2026. Credit on an April 2026 deduction belongs to tax year 2026-27, in Form 168.
Form 26AS was already a statement of tax credit sitting beside the AIS. The switch that matters for a new tax year is the Form 168 label, not a new rate of TDS. The FAQ also says TDS rates and monetary thresholds were retained. The consolidation under section 393 is a table, not a rate change.
How do you check a 1962 rule now?
- Write down the earlier of credit or payment. That date picks the Act.
- If it is on or before 31 March 2026, open the 1962 rule. Rule 30 is still the deposit rule for that deduction.
- If it is on or after 1 April 2026, open G.S.R. 198(E) and use the new rule number. Rule 218 is the deposit rule. Do not cite rule 30 for that deduction.
- Quote section 392 or section 393, not section 192 or section 194C, on a new-Act deduction.
- For the four old challan-cum-statements, use Form 141 only when the event is on or after 1 April 2026.
The 1962 text remains useful as a map. It is the wrong citation for a new deduction. A quarterly TDS return guide written against rule 31A still describes the old clock. Read it next to this cut-off, and check the gazette before you file a statement for a quarter that begins on or after 1 April 2026. New CBDT notifications land on the CBDT updates feed.
Practical checks
Common questions
We credited a contractor on 31 March 2026 and paid in April. Which rules apply?
The Income-tax Act, 1961 and the Income-tax Rules, 1962. The department's TDS FAQ says the governing Act is the one in force on the earlier of credit or payment. Credit on 31 March 2026 is on or before the cut-off, so section 194C of the 1961 Act applies. Do not quote section 393 for that credit.
The same contractor was credited on 5 April 2026. Which section do we quote?
Section 393 of the Income-tax Act, 2025. The Tax Payments FAQ says a payment or credit on or after 1 April 2026 is governed by the 2025 Act, and quoting an old section such as 194C on that return can fail validation. The FAQ's own example for a contractor payment uses section 393(1), table serial 6(i).
TDS for March 2026 was deposited on 2 May 2026. Is that late?
Yes, for a non-government deductor. The Tax Payments FAQ says March 2026 TDS is due by 30 April 2026. A May deposit is after that date. Interest for failure to deposit after deduction is 1.5 percent per month or part of a month, under section 398(3)(a)(ii) of the 2025 Act for a new-Act default, and at the same rate under the 1961 Act for a March 2026 deduction.
We bought a flat and the credit was on 2 April 2026. Is it still Form 26QB?
No. Form 26QB was the challan-cum-statement for a purchase of immovable property when the credit or payment fell on or before 31 March 2026. The TDS FAQ says that from 1 April 2026 a common form, Form 141, covers that case and the old 26QC, 26QD and 26QE cases. The due date for those four is still 30 days from the end of the month of deduction.
Where do I see TDS credit for tax year 2026-27?
Form 168, not the old AIS label. The Tax Payments FAQ says the Annual Information Statement continues for periods governed by the 1961 Act, up to assessment year 2026-27, and from tax year 2026-27 it is Form 168. A March 2026 deduction still belongs in the AIS for assessment year 2026-27, even if the deductor deposited it after 1 April 2026.
Is the advance-tax floor still ₹10,000?
Yes. Section 404 of the Income-tax Act, 2025 requires advance tax if the tax payable on that computation is ₹10,000 or more. The Tax Payments FAQ says that floor is unchanged from the 1961 Act. The instalment dates did not move with the new rules either.
Can I still open rule 30 of the 1962 Rules?
Yes, for a deduction whose credit or payment fell on or before 31 March 2026. Rule 30 is the deposit rule for that period. For a deduction on or after 1 April 2026, the corresponding rule is rule 218 of the Income-tax Rules, 2026. The old text does not govern the new deduction just because the portal still shows the 1962 rule.
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How this guide was prepared
This guide is published by the Complied AI research desk. Its source list and stated position were checked against the official records shown below on 29 September 2026.
Automation, including AI, may assist research, drafting and structure. It does not replace the official record or amount to an independent professional review. Read our editorial standards and corrections policy.
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