Draft Income Tax Rules: Form 16 and Form 26AS Numbers to Change — Here’s How It Affects You

Draft Income Tax Rules: The Income Tax Department has recently rolled out the Draft Income Tax Rules for 2026. A number of income tax regulations are about to change, which will affect all taxpayers. The salary structure for those who are employed will also be impacted by these updates. Many experts believe that the previous income tax system might become more attractive again once the Income Tax Act of 2025 is implemented. Let’s take a look at some of the changes that will affect individual taxpayers.

Form 16 number will be changed to 130

With the new regulations, the names of some commonly used forms will also be updated. This includes Form 16 and Form 26AS. Form 16 will now be called Form 130, while Form 26AS will be renamed Form 168. Both of these forms are widely utilized. Form 16 is specifically for employees, and employers are required to provide this form to their staff by June 15th each year. It includes details about employees’ income, TDS, taxes, deductions, and more.

Form 26S number will change to 168

Form 26AS provides information on all taxpayers’ tax-related transactions. This form is issued by the Income Tax Department and includes various sections such as TDS, TCS, advance tax, and tax refunds. Taxpayers can easily download this form from the Income Tax portal.

The burden of compliance will not increase on taxpayers

Brajesh Pranami, the founder and CEO of Fly High Financial Services, mentioned that changing the form number doesn’t imply that tax rules are changing. This adjustment won’t affect tax policy or increase the compliance burden. CA Mrinal Mehta stated that the reporting formats for Form 130 and Form 168 will stay the same as those currently used for Form 16 and Form 26AS. The Income Tax Department will release a notification regarding the filing process and deadlines.

New income tax rules will come into effect from April 1

The Income Tax Act of 2025 is scheduled to take effect on April 1st of this year. Before that, the Income Tax Department has introduced the Draft Income Tax Rules for 2026. Comments will be accepted until February 22nd. After gathering feedback from all parties involved, including experts, CAs, and taxpayers.

Mehta said that the biggest change after the new Act comes into effect will be the tax year. The new rules will use only one term, “tax year.” Currently, two tax years are used: previous year and assessment year. This causes considerable confusion for taxpayers. He said that Form 130 and Form 168 will refer to the tax year 2026-27. This will not cause any problems for taxpayers.