New Delhi: The government has proposed major changes to income-tax compliance forms under the Income-tax Act, 2025, which is scheduled to take effect from April 1, 2026. The draft Income-tax Rules aim to simplify tax filing, standardise compliance procedures, and align forms with the new law.
One of the biggest changes is the renumbering of several commonly used tax documents, including salary and tax-credit statements used by millions of taxpayers. For example, Form 16, issued by employers to show salary income and TDS details, is expected to be renamed Form 130, while Form 26AS, which records tax credits and deductions, may become Form 168 under the new framework.
The Annual Information Statement (AIS) will continue to provide a broader view of a taxpayer’s financial transactions — including interest income, dividends, and securities transactions — alongside traditional tax-credit records.
Officials say the restructuring is not just about renaming forms but also about making tax compliance easier and more organised. The draft rules reduce the number of income-tax rules from over 500 to about 333, helping streamline procedures for taxpayers and professionals.
Other compliance documents, including audit and reporting forms, are also being reorganised and renumbered to match the structure of the new tax law. These changes are currently in the draft stage, and the government has invited feedback from stakeholders before final notification.
Overall, while the process of filing income tax returns is expected to remain largely familiar, taxpayers, employers, and chartered accountants may need to adjust to new form numbers and updated compliance formats starting in the 2026–27 financial year.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
