New income tax forms 2025: What taxpayers must know

April 9, 2026 Finance Talk Valli Sarvani

India’s tax system has entered a new phase with the rollout of the Income Tax Act, 2025, effective April 1, 2026.

The overhaul aims to simplify compliance and make filing returns more efficient. As part of this transition, several familiar forms under the Income Tax Act, 1961, have been replaced with new ones.

One of the most notable changes affects salaried individuals. The widely used Form 16 has now been replaced by Form 130.

Similarly, Form 16A, used for non-salary income, is now Form 131. Additionally, Form 10E, which helps claim relief on salary arrears, has been renamed Form 39.

Changes also extend to tax deduction and remittance processes. Forms 15G and 15H, used to avoid TDS on certain incomes, are now merged into Form 121.

Meanwhile, Form 15CA and Form 15CB, required for foreign remittances, have been replaced by Form 145 and Form 146, respectively.

For quarterly TDS filings, the updates are equally significant. Form 24Q is now Form 138 for salary-related TDS.

Form 26Q has become Form 140 for non-salary payments. Likewise, Form 27Q, used for payments to non-residents, is now Form 144.

Taxpayers seeking lower or nil TDS certificates will now use Form 128 instead of Form 13.

Furthermore, the traditional Form 26AS has been replaced by a more integrated reporting system under Form 168, aligning with the Annual Information Statement (AIS) and Taxpayer Information Summary (TIS).

Deductions have also been restructured. Section 80C is now renamed Section 123, although the deduction limit remains ₹1.5 lakh.

Taxpayers can still claim benefits through investments such as PPF, ELSS, life insurance premiums, NSC, Sukanya Samriddhi Yojana, and home loan principal repayment.

Property-related TDS compliance has been streamlined as well. Forms like 26QB, 26QC, 26QD, and 26QE are now consolidated into a single Form 141.

These changes aim to modernise the tax framework while reducing complexity. However, taxpayers must familiarise themselves with the new form numbers to ensure smooth filing and compliance in the upcoming assessment cycles.

Image from Pxhere (Free for commercial use / CC0 Public Domain)

Image Published on February 25, 2017