Tax forms are getting renamed: What salaried taxpayers should know
What's the story
The Income Tax Department has proposed a major change in its Draft Income-tax Rules, 2026. The proposal, which is now open for stakeholder consultation, suggests a complete renumbering of income-tax forms. The move comes as part of the implementation of the Income-tax Act, 2025 from April 1 this year. Under this new framework, Form 26AS will be rebranded as Form 168 and Form 16 will become Form 130.
Impact on taxpayers
Proposed changes applicable for tax years starting after April 1
The proposed changes will be applicable for tax years starting on or after April 1, 2026. Vikas Sharma, Lead-Personal Tax at AKM Global, said this renumbering is an administrative move resulting from the rationalization of forms under the new legislative framework. He added that for salaried taxpayers and employers, the essence, information content and timelines of these forms remain largely unchanged.
Clarification on changes
Change in numbering not a tax policy change
Brajesh Pranami, Founder and CEO of Fly Hi Financial Services Limited (Flyhi Finance), clarified that the change in numbering should not be seen as a tax policy change. He said it doesn't change tax policy or increase compliance burden but instead standardizes documentation under the new Act. CA Mrinal Mehta, Joint Secretary of the Bombay Chartered Accountants's Society, also confirmed that reporting formats of existing Forms 16 and 26AS and proposed Forms 130 and 168 remain unchanged.
Digital integration
New forms designed for better digital integration
The new forms are designed for better digital integration. Much of the data in draft Form 130 will be auto-populated from employers' quarterly filings (Form 139). This could minimize mismatches between the TDS certificate and taxpayer's annual tax statement—now called the Tax Passbook under Form 168.
Terminology change
Merger of 'Previous year' and 'Assessment year'
Another major structural change under the 2025 Act is the merger of "Previous Year" and "Assessment Year" into a single term—"Tax Year." Mehta said Forms 130 and 168 will show "Tax Year 2026-27" for income earned during that period. This simplification aims to make documentation references clearer and reduce interpretational ambiguity.
Issuance guidelines
Initial years may see old and new form numbers coexisting
If an employee has multiple employers in a tax year, each employer must issue both Part A and Part B of Form 130 for their respective period of employment. This is aimed at ensuring seamless reporting and reducing gaps during job transitions. Experts have warned that the initial years could see old and new form numbers coexisting, possibly leading to confusion in communication, documentation, and litigation if not handled carefully.