Draft Income Tax Rules: The Income Tax Department has recently introduced the Draft Income Tax Rules 2026. These new rules are being prepared for the implementation of the Income Tax Act 2025, which will come into effect from April 1. This change will affect all taxpayers, especially salaried employees. Due to changes in many rules, there will be changes in tax forms and reporting also.
Changing the name of Form 16 and 26AS
The biggest change is that the numbers of many commonly used forms have been changed-
- Form 16 will now be called Form 130
- Form 26AS will now be Form 168
Form 16 is a document which is issued to employed people by their employers every year by June 15. It contains information about their income, TDS, taxes and deductions. Form 26AS contains information about all the tax transactions of the taxpayers throughout the year like TDS, TCS, advance tax and tax refund. Taxpayers can download it from the Income Tax Portal.
Are tax rules changing?
Many people may think that by changing the form number the tax rules will also change, but it is not so. Only the form number is changing, not the tax policy. This means that there will be no major impact on tax rules and compliance (such as deadlines for filing taxes).
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Same term of tax year
Now in the new rule only one word tax year will be used for tax year. Currently, there are two words in tax – Previous Year and Assessment Year which confuse many people. In the new Forms 130 and 168, 2026-27 will be written as the tax year, which will make it easier for taxpayers to understand.
What is the last process?
All taxpayers, CAs and experts can give their opinion on these draft rules till 22 February. After this, the department will issue final rules keeping those suggestions in mind. It is expected that the final rules will come in the next 1-2 months.