Income Tax Rules 2026 Bring New PAN, TDS & AIS Forms: Here’s What Changes

Outlook Business Desk

Tax Rules Updated

The Income Tax Rules (ITR) 2026 introduce revised and merged tax forms linked to PAN, TDS and declarations to simplify compliance, reduce paperwork and make tax filing more efficient for taxpayers.

Unified TDS Certificate

Form 132 replaces Forms 16B, 16C, 16D and 16E with a unified TDS certificate covering rent, property transactions, technical services and Virtual Digital Assets to simplify reporting and improve tax filing compliance.

New PAN Forms

Forms 93, 94, 95 and 96 have replaced older PAN application Forms 49A and 49AA. Separate formats are now available for Indian individuals, Indian entities, foreign individuals and foreign entities to strengthen PAN-related compliance and documentation accuracy.

Easier Relief Claims

Form 39 replaces Form 10E for taxpayers seeking relief on arrears, gratuity, retrenchment compensation and pension commutation. The revised format aims to simplify submissions and make the tax relief claim process easier under the updated Income Tax Rules 2026.

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Employee Deduction Form

Form 124 has been introduced for employee declarations related to deductions and exemptions. It covers House Rent Allowance (HRA), Leave Travel Allowance (LTA), home loan interest and tax-saving investments through a more standardised format.

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New AIS Format

Form 168 replaces Form 26AS with an updated Annual Information Statement format. It includes the Taxpayer Information Summary and important financial details linked to a taxpayer’s PAN, helping individuals track transactions more clearly during tax filing.

Single TDS Declaration

Form 121 replaces Forms 15G and 15H with a single declaration form for taxpayers whose total tax liability is nil. It applies to income sources including dividends, interest income and rent where Tax Deducted at Source may be applicable.

Why Rules Changed?

The revised forms aim to reduce duplication and make tax compliance more organised. Consolidated formats such as Forms 132 and 121 are expected to save time, improve accuracy and reduce confusion for taxpayers.

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