Tax Made Simple: Major Form Changes and Compliance Updates for 2026

India’s Income Tax Department has issued the Draft Income-tax Rules, 2026, along with draft forms to implement the Income-tax Act, 2025. These rules lay out how the new tax system will start from April 1, 2026. One of the major changes is the complete renumbering of income-tax forms.

From April 1, 2026, commonly used forms like Form 26AS, Form 16, and Form 13 will be replaced with new form numbers under the Income-tax Act, 2025.

This may cause some confusion at first, especially for salaried employees, pensioners, and senior citizens. A Chartered Accountant has said that for Tax Year 2026-27 onwards, all tax-related documents, including TDS certificates issued by employers, will use the new form numbers once the government formally notifies them and systems are updated.

During the transition period, both the old and new systems may run at the same time. Which form applies will depend on the relevant tax year, not just the date the document is issued. The following are the important updates for Businesses and Tax Audits.

Audit Report Consolidation

For businesses that are required to undergo a tax audit, the government has simplified the process by merging multiple forms into one. Earlier, businesses had to file Forms 3CA, 3CB, and 3CD separately, but now all of these will be combined into a single Form 26. This change is intended to reduce paperwork, make filing easier, and help the tax department verify information more efficiently.

Transfer Pricing and MAT updates

Transfer pricing audit reports will now be filed in Form 48 instead of Form 3CEB.

Companies that pay Minimum Alternate Tax (MAT) will now submit their certification in Form 66 instead of Form 29B.

Nothing else about the rules or compliance requirements has changed. But companies and auditors will need to update their systems, software, and report formats to use the new form numbers.

Updates in TDS and TCS returns

The government has proposed changes in the numbering of TDS and TCS return forms.

• Salary TDS returns: Form 24Q has now been replaced with Form 138.
• Resident TDS returns: Form 26Q has now been replaced with Form 140.
• Non-resident TDS returns: Form 27Q has now been replaced with Form 144.
• TCS returns: The earlier Form 27EQ has now been replaced with Form 143.

Major Changes in NRI, DTAA Claims, and Foreign Remittances

• DTAA declaration: Form 10F has been replaced with Form 41.
• Tax Residency Certificate (TRC) application: Form 10FA is now Form 42.
• Foreign remittance declaration: Form 15CA has been replaced with Form 145.
• Chartered Accountant certificate for remittances: Form 15CB is now Form 146.

Using old forms may lead to delays in remittances and rejection of DTAA/treaty benefit claims.

Changes in Charitable Trusts and NGOs

Charitable trusts and NGOs will undergo a significant compliance restructuring. The following are some changes:

• Provisional registration will shift from Form 10A to Form 104.
• Final registration or renewal will move from Form 10AB to Form 105.
• Reporting of income accumulation will change from Form 10 to Form 109.
• Audit reports will now be filed using Form 112, replacing Forms 10B and 10BB.
• Donee statements will be submitted through Form 113.
• Donor certificates will be issued in Form 114.

The overall reform focuses on improved donation traceability and automated verification systems. The draft rules are open for people to give their opinions. Parliament must approve them before April 1, 2026, for the new system to start working.