Income Tax Rules Amended: CBDT Extends Registration Deadline to March 31, 2027; Arrest Provisions Removed

The Central Board of Direct Taxes (CBDT) has extended the deadline for registered valuers and authorised income-tax practitioners to apply for registration from September 30, 2026, to March 31, 2027, giving professionals an additional six months to complete their filings under the new statutory framework. The extension is part of the Income-tax (Fourth Amendment) Rules, 2026, which also substitutes Forms 169 and 171, allows notices to be served through a wider range of electronic communication, and removes arrest and detention of tax defaulters from the recovery provisions in Rule 225. The changes bring transition relief for valuers and practitioners while reshaping how recovery proceedings and electronic service work under the rules.

The amendment was issued through Notification No. 120/2026 on September 17, 2026. Some parts of the framework operate retrospectively from April 1, 2026, while the remaining provisions came into force as soon as the notification was published in the gazette.

Tax Audit Deadline Not Extended

The extension applies only to registration of valuers and practitioners. The CBDT has not changed the compliance deadline for standard tax audit reports. Taxpayers subject to audit under Section 44AB must still get their chartered accountants to complete the audit and upload the report by September 30, 2026. Income Tax Refunds Rise 29% to INR 2.20 Lakh Crore: Check Why Your Refund Is Pending and What To Do.

New Deadlines Under Rules 246 and 256

Under Rule 246, the cutoff under sub-rule (4) for valuer registration applications moves from September 30, 2026, to March 31, 2027. Under Rule 256, the same extension applies to authorised income-tax practitioners under sub-rule (4). The relief is meant to ensure continuity in professional representation and asset valuation services while professionals migrate to the new registration framework. How To Check Your Income Tax Refund Status Online?

Form 169 for Valuer Registration Revised

Form No. 169, prescribed under Section 514, now requires separate applications for different asset classes, covering immovable property, agricultural land, securities, plant and machinery, jewellery and works of art. Applicants must give their educational qualifications and three-year valuation history, and declare that they have no direct or indirect interest in the assets they value. The form carries a fee of INR 10,000, which is waived for valuers already registered under the Wealth-tax Act, 1957.

Form 171 for Tax Practitioners Updated

Form No. 171, prescribed under Section 515, captures personal identity details, professional qualifications and certification of practice before income tax authorities. It also requires disclosure of any statutory disqualifications.

Electronic Communication Replaces Digital Signature Requirement

Under Rule 176(3)(a)(ii), the phrase "by affixing digital signature" has been replaced with "by way of an electronic communication." The change, effective retrospectively from April 1, 2026, gives the department more legal flexibility to use authenticated electronic transmission methods beyond digital signature certificates (DSC).

Arrest and Detention Removed From Rule 225

In a notable change to Rule 225, which governs tax recovery proceedings, the board has omitted the provisions on civil arrest and detention of tax defaulters. Clause (c) of Rule 225(4), along with sub-rules (75) to (83) and (91), has been deleted, taking arrest and detention in prison out of the administrative recovery toolkit under this rule. Recovery officers can still enforce arrears through existing remedies, including attachment and sale of movable and immovable property and the appointment of receivers.

(The above story first appeared on LatestLY on Sep 20, 2026 02:51 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).