The draft Income Tax Rules 2026 have been released under the proposed new Income Tax Act.
These rules are set to come into effect from April 1, 2026.
The biggest update? Several well-known tax forms are being renumbered.
However, experts say the changes are mainly structural and administrative.
There are no major changes in procedures or reporting formats.
The draft law has been shared for public feedback, and stakeholders have been invited to give suggestions.
Key Forms to Get New Numbers
According to reports, some familiar tax forms will now carry new numbers.
For example:
Form 16 may be renamed as Form 130
Form 26AS may be renamed as Form 168
While the numbers are changing, the purpose and content of these forms are expected to remain the same.
An official notification is still awaited, but tax professionals say salaried employees and taxpayers should not expect major format changes.
What Will Be the Real Impact?
Experts believe that for most taxpayers, daily tax processes will remain largely unchanged.
Deadlines, reporting structure, and compliance requirements are expected to stay the same.
The main difference will be the numbering and classification of forms under the new law.
All tax-related communication for the financial year 2026–27 is likely to use the new form numbers.
However, the final rollout will depend on how quickly the Income Tax portal is updated and when the government issues the official notification.
Will There Be a Transition Period?
To avoid confusion, the government may allow both old and new form numbers to run together for a limited period.
This will help taxpayers adjust without disruption.
Some initial confusion is possible, especially among salaried individuals and small businesses.
But experts say that if the government releases clear guidelines and detailed FAQs, the transition should be smooth.
Currently, the Central Board of Direct Taxes has invited feedback on the draft rules.
The law is expected to be passed by Parliament before April 1, 2026.
In the coming weeks, more detailed instructions are likely to be issued to help taxpayers understand and adapt to the new system.
