The Indian income-tax landscape is set for a significant transformation with the introduction of the Draft Income Tax Rules 2026. If you’re a taxpayer, chartered accountant, or finance professional, you’ll want to pay close attention to these changes—they’re renumbering almost every form you’ve been familiar with for years.
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Understanding the Big Picture: Why This Renumbering?
The Draft Income Tax Rules 2026 propose a comprehensive revision of the numbering system for frequently used income-tax forms that were prescribed under the IT Rules, 1962. This is part of a broader effort to modernize and streamline India’s tax administration as we transition to the new Income-tax Act, 2025.
Tax Audit Forms: From Old to New
One of the most significant changes affects tax audit reporting:
The familiar Forms 3CA, 3CB, and 3CD are being consolidated and renumbered as Form 26. This new form will contain 55 segment-wise clauses, making it a comprehensive document for tax audit reporting. The Transfer Pricing Audit form is moving from 3CEB to Form 48, and the MAT (Minimum Alternate Tax) report transitions from 29B to Form 66.
For businesses dealing with international transactions, the Tax Residency Certificate (TRC) shifts from Form 10FA to Form 42, while DTAA (Double Taxation Avoidance Agreement) details under sections 90/90A will now be filed using Form 41 instead of Form 10F.
Registration and PAN-Related Changes
Indian citizens and companies will now use Form 94 instead of 49A for PAN applications, while others will use Form 95 (previously 49AA).
For organizations seeking provisional registration or approval, Form 10A becomes Form 104, and NGOs looking for registration or renewal will use Form 105 instead of Form 10AB.
Important Updates for Trusts and Charitable Institutions
Non-profit organizations and charitable trusts should take note of these changes:
- Accumulation of income, previously reported in Form 10, will now use Form 109
- Audit reports for trusts, societies, and Section 8 companies move from Forms 10B/10BB to Form 112.
- Statements by donees shift from Form 10BD to Form 113.
- Certificates to donors change from Form 10BE to Form 114
Appeals: New Form Numbers You Should Know
If you’re filing appeals, here are the new numbers:
- Appeals before the Commissioner of Income Tax (Appeals) move from Form 35 to Form 99 .
- Appeals before the Income Tax Appellate Tribunal (ITAT) transition from Form 36 to Form 115 .
- ITAT Cross Objections shift from Form 36A to Form 116 .
TDS and TCS: A Complete Renumbering
This is where the changes become particularly relevant for businesses and employers who regularly deal with tax deduction and collection compliance.
The quarterly TDS return for salaries moves from 24Q to Form 138. For TDS on payments to residents (non-salary), you’ll now use Form 140 instead of 26Q. Payments to non-residents see their TDS returns move from 27Q to Form 144
Tax Collection at Source (TCS) returns transition from 27EQ to Form 143, and if you’re applying for lower or nil TDS certificates, Form 13 becomes Form 128 .
Other Critical Forms for Day-to-Day Compliance
Several other commonly used forms are also getting new identities:
- The ubiquitous Form 26AS (your tax credit statement) becomes Form 168 .
- Foreign remittance declarations shift from Form 15CA to Form 145 .
- CA certificates for foreign remittances move from Form 15CB to Form 146 .
- Statement of Financial Transactions (SFT) filing changes from Form 61A to Form 165 .
TDS & TCS Under the New Income-Tax Act, 2025
Beyond just renumbering forms, there’s a structural reorganization of TDS and TCS provisions under the new Income-tax Act, 2025, which becomes effective from April 1, 2026 (for Assessment Year 2026-27).
New Chapter Structure: Everything in One Place
The new Act consolidates TDS and TCS provisions into a dedicated chapter with clear sectional references:
- Section 392 covers TDS on salary income .
- Section 393 deals with TDS on income other than salary .
- Section 394 consolidates all TCS provisions.
- Section 395 addresses TDS/TCS certificates.
- Section 396 covers credit of TDS/TCS.
- Sections 397-402 cover compliance, reporting, interest, penalties, and interpretation.
Key TDS Provisions to Remember
Under Section 393, TDS will continue to apply on professional and technical fees, interest, dividends, commission, rent, and contractor payments. Importantly, TDS on Virtual Digital Assets (VDAs) continues at 1%, subject to prescribed thresholds.
Higher TDS rates for non-filers and specified persons will remain in force, though with revised section references. Provisions relating to immovable property transactions, e-commerce operators and participants, cash withdrawals, and benefits or perquisites are retained with structural alignment under the new Act.
TCS Simplified Under One Section
Section 394 brings all TCS provisions under a single umbrella. This includes revised TCS rates on specified items such as scrap, minerals, alcoholic liquor, and tendu leaves.
For those making foreign remittances under the Liberalised Remittance Scheme (LRS), the new provisions clearly segregate transactions for education and medical purposes from other purposes, with separate thresholds and rates. Additionally, overseas tour program packages will be subject to flat TCS, regardless of transaction value.
Ready to tackle these changes with confidence?
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