Major changes are going to be implemented in the country’s tax system from April 1, 2026. The new income tax structure will replace the old law of 1961, which will change many procedures, especially for employed people.
New document in place of Form-16
Till now, Form-16 was given to salaried employees by their employer, but in the new system Form-130 has been introduced in its place. This will also be a TDS certificate, but will give more detailed information than before.
What is special in Form-130?
Form-130 has been designed so that taxpayers can get complete and accurate details of their income, deductions and tax liability in one place. Earlier, due to difference in the data of Form-16 and ITR, many people had to face notices, which has now been tried to be reduced.
Strictness on digital transactions
Apart from tax, the rules of digital payment are also changing. According to the instructions of the Reserve Bank of India, now two-factor authentication (2FA) will be mandatory for every online transaction.
Now only OTP will not work
After April 1, 2026, payment will not be possible only on the basis of OTP. Users must verify identity in at least two ways, such as OTP + PIN, Biometric (Fingerprint/Face) + Token, Password + Device Verification
Why is this change necessary?
In recent years, cases of phishing, SIM swap and OTP fraud have increased. The purpose of the new rules is to prevent cyber fraud and increase the security of users.
Impact on international transactions also
According to RBI, the same 2FA rules will be implemented on international online transactions by October 2026. The new tax system and digital payment rules are a big step towards increasing transparency and security. However, users will need to update themselves according to these changes.