Nisha Agarwal

The Central Board of Direct Taxes (CBDT) has issued a corrigendum on 16 April 2026 correcting multiple errors in the newly notified Income-tax Rules, 2026. These corrections include wrong section references, numbering mistakes, drafting errors, and form-related inconsistencies.

Many remote workers and freelancers consider showing salary as business income to reduce taxes using presumptive schemes. However, legal eligibility, GST implications, and strict tax provisions make this strategy risky if not properly structured.

The Finance Bill, 2026 proposes a sharp increase in penalty for failing to provide business information to tax officers. The penalty may rise from ₹1,000 to ₹25,000, signaling stricter compliance under the new Income-tax framework.

From April 1, 2026, Form 15G and 15H are being replaced by a unified Form 121 under new tax rules. The move simplifies TDS exemption declarations for taxpayers with nil tax liability, bringing a single, streamlined compliance system.