The Central Board of Direct Taxes (CBDT) has amended the Income Tax Rules, 2026, removing a provision that allowed tax recovery officers to arrest defaulters and detain them in prison.
A tax defaulter can no longer be arrested or detained for recovering tax dues. Other modes of recovery, including sale of movable or immovable property, will continue.
The CBDT also revised application forms for registration of valuers and authorised income-tax practitioners under the Income-tax Act, 2025. This marks another step towards formalising professional standards in tax administration, experts said.
The revised Form 169, for individuals seeking registration as valuers, requires applicants to provide key personal and professional details, including educational qualifications, professional certifications, relevant valuation experience and the class of assets for which registration is sought. Valuers already registered will also have to update their details under the new framework.
A valuer is a professional who assesses the value of assets such movable and immovable property.
Similar requirements have been prescribed under Form 171 for individuals seeking registration as authorised income-tax practitioners.
“The revised registration framework reflects a clear policy intent to professionalise tax valuation and representation. By insisting on qualification, disclosure and independence at the entry stage, CBDT is moving towards a more accountable ecosystem for taxpayers and tax professionals alike,” said Riaz Thingna, partner, Grant Thornton Bharat.
According to Jayesh Sanghavi, tax partner at EY India, the new amendments should enhance credibility and give taxpayers access to better-verified and standardised professionals.
The tax department has also extended by six months, to March 31, the deadline for registration of valuers and authorised income-tax practitioners under the new Income-tax Act, 2025. The previous deadline was September 30.
The extension provides professionals additional time to complete the requirements under the new framework, making the transition more flexible.
“The extended transition period, together with a more structured application process, should make compliance more orderly and facilitate ease of compliance for professionals by reducing transitional difficulties for registered valuers,” said Amit Maheshwari, managing partner, AKM Global.