NewDelhi: The government has introduced a major revamp of income tax forms under the new Income Tax Rules 2026. Several changes in income tax forms have been introduced that taxpayers, salaried employees, pensioners and businesses should be aware of. From PAN application forms to forms relating to TDS, here are the key income tax form changes every taxpayer should be aware of to ensure compliance with the new IT rules.
1. PAN application forms changed
New PAN application forms have been introduced replacing the older ones. Under the updated rules, Indian residents and companies are required to fill Form 93, replacing the earlier Form 49A. Non-residents and other entities must use Form 95 instead of Form 49AA. Form 95 applies to individuals who are not citizens of India. Form 96 applies to entities incorporated outside India and unincorporated entities formed.
2. Form 130 for salary TDS certificate
Form No 130 replaces Form 16 issued under the Income Tax Rules, 1962. Form 130 is a certificate for Tax Deducted at Source (TDS) that is issued annually by an employer to a salaried employee or a pensioner. It provides a detailed summary of the salary earned, tax deducted and deposited and other applicable deductions. It also applies to interest income earned by specified senior citizens. Such a certificate enables the deductee to claim credit for the TDS deducted and deposited on their behalf by the deductor.
3. Form 131 for non-salary income TDS certificate
Form No 131 is a certificate prescribed under Section 395(4)(a) of the Income tax Act, 2025 for TDS. Such a certificate is issued by the deductor to the deductee on whose behalf tax has been deducted at source. It serves as proof of tax deducted and deposited with the central government on behalf of the deductee who had earned income other than salary and which was subjected to TDS. The form is meant to enable the deductee to claim TDS credit at the time of filing of the ITR.
4. Form 121 for declaration for nil TDS deduction
Form No 121 is a statutory declaration prescribed under the Income Tax Rules, 2026, through which a taxpayer declares that tax liability on its estimated total income for the relevant tax year is nil. Based on this declaration, the deductor is permitted to not deduct tax at source on a specified payment. The form acts as a preventive compliance tool ensuring that taxpayers whose tax liability is nil are not subjected to unnecessary TDS thereby avoiding subsequent refund claims and administrative burden.
5. Form 168 for annual tax information statement
Notified under Rule 245 of the Income-tax Rules, 2026, Form 168 is a comprehensive annual tax information statement reflecting all tax-related and specified financial transactions linked to the PAN of the taxpayer. It enables taxpayers and the Income Tax Department to verify taxes paid, income sources and compliance history.
6. Form 128 for application for lower or nil TDS/TCS deduction
Form No 128 is used by a taxpayer to apply for a certificate authorising the payer to deduct tax at a lower or nil rate or collect tax at a lower rate under Section 395(1)/395(3) of the Income-tax Act, 2025. Any person seeking certificate for no deduction of tax or deduction or collection of tax at a lower rate under section 395(1) (for TDS) or section 395(3) (for TCS) of the Income-tax Act, 2025, in respect of income that is subject to tax deduction at source such as interest, commission, professional fees, contract payments, rent or other specified income may file application in Form No 128.
7. Form 141 for reporting TDS on specified transactions
Form 141 is the challan cum statement for payment and reporting of tax deducted under Section 393(1) of the Income tax Act, 2025. Earlier, separate forms such as Form 26QB, 26QC, 26QD and 26QE were used for reporting TDS on specified transactions. These forms have now been merged into a single unified form called Form 141. It covers four key transaction categories of rent payments by individuals or Hindu Undivided Families, purchase or transfer of immovable property, payments to contractors or professionals and transfer of virtual digital assets.
8. Form 26 for business accounts that require to be audited under Section 63
The existing tax audit forms 3CA, 3CB and 3CD are consolidated into a single Form No 26. Form 26 is the prescribed Report of Audit of Accounts and Statement of Particulars required to be furnished under Section 63 of the Income-tax Act, 2025, in accordance with Rule 47 of the Income-tax Rules, 2026. Form 26 is required to be furnished by a person carrying on business or profession whose accounts are required to be audited under Section 63 of the Income-tax Act, 2025.
Leave a Reply