New Delhi: The Income Tax Department has released the Draft Income tax Rules, 2026, marking a major transition as India prepares to implement the Income tax Act, 2025 from April 1, 2026. One of the most visible changes under the new law is the renumbering of key compliance forms, aimed at simplifying and modernising tax administration.
The revised rules form part of a broader effort to replace the six decade old Income tax Act, 1961 with a clearer and more structured legal framework. While the substance of most tax provisions remains unchanged, the numbering of sections, rules and forms has been aligned with the new Act to improve consistency and ease of use.
Major Changes in Form Numbers
Several commonly used tax forms will now carry new numbers under the updated rules:
International taxation and residency
- The Tax Residency Certificate (TRC) application, earlier Form 10FA, will now be filed as Form 42.
- Information for claiming tax treaty benefits, earlier in Form 10F, will be submitted through Form 41.
Charitable trusts and institutions
- Provisional registration shifts from Form 10A to Form 104.
- Final registration or renewal moves from Form 10AB to Form 105.
- Declaration for accumulation of income, earlier Form 10, becomes Form 109.
- Audit reports previously filed in Forms 10B and 10BB will now be submitted in Form 112.
Withholding tax and reporting
- Application for lower or nil TDS, earlier Form 13, will now be Form 128.
- The salary TDS certificate (earlier Form 16) will now be issued as Form 130.
- Quarterly TDS returns such as 24Q and 26Q will be replaced by Form 138 and Form 140.
- TDS returns for non-residents (earlier 27Q) will become Form 144, while TCS returns (earlier 27EQ) will be Form 143.
Statements and foreign remittances
- The Annual Tax Statement, earlier known as Form 26AS, will now be issued as Form 168.
- Foreign remittance declarations and certificates (earlier Forms 15CA and 15CB) will be renumbered as Forms 145 and 146.
- The Statement of Financial Transactions (SFT) will be filed as Form 165 under the new rules.
Impact on Taxpayers and Professionals
Tax officials and experts note that although the numbering of forms has changed, the purpose and data requirements of most forms remain largely the same. The objective is to remove legacy references, ensure uniformity with the new Act, and improve digital processing of returns and reports.
Businesses, employers, banks, and tax professionals will need to update their internal systems, software tools, and compliance checklists before the April 2026 rollout. Employers, in particular, must prepare to issue salary certificates and TDS statements in the new formats from the next financial year.
Consultation and Transition
The draft rules have been released for public consultation, and stakeholders have been invited to submit feedback before final notification. During the transition phase, filings for the current financial year are expected to continue under existing formats, with the new forms becoming mandatory for the assessment year beginning April 2026.
Part of Wider Tax Reform
The Income tax Act, 2025 retains existing tax rates and slabs but restructures the law for greater clarity and operational efficiency. The reform aims to reduce litigation, simplify compliance, and support greater use of digital tools in tax administration.
With the renumbering of forms and restructuring of rules, the government hopes to make India’s direct tax system more transparent, predictable, and user friendly for individuals as well as businesses.
