New Delhi: In a structural overhaul aligned with the Income-tax Act, 2025, the Income Tax Department has released the Draft Income-tax Rules, 2026, proposing a renumbering of key tax forms. From April 1, 2026, the Form 16 issued to salaried employees will be known as Form 130, while the tax credit statement Form 26AS will be redesignated as Form 168. The department has clarified that the move is administrative in nature and does not alter tax rates, exemptions, or the return filing process.
The draft rules are currently open for stakeholder feedback, but implementation alongside the new law is expected. Tax experts say the renumbering is aimed at aligning legacy documentation with the new legislative framework and improving structural consistency in digital processing and compliance systems.
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A key conceptual shift under the new regime is the replacement of the dual terminology — “Previous Year” and “Assessment Year” — with a single unified term: “Tax Year.” This eliminates the need to refer separately to the income year and the filing year. For instance, what was earlier denoted as FY 2025–26 and AY 2026–27 will now be referred to simply as Tax Year 2026–27, reducing interpretational confusion for taxpayers and software systems alike.
The proposed Form 130 will retain the same core structure as the current Form 16. It will continue to include salary breakup, HRA details, standard deduction, TDS, and net taxable income. The changes are limited to form numbering and updated statutory references under the new Act. Similarly, Form 168 will continue to display TDS, TCS, advance tax, self-assessment tax, and refund details, but is being positioned as a more integrated digital “tax passbook.”
Greater emphasis has been placed on data pre-filling. Information reported by employers in quarterly TDS statements is expected to auto-populate several fields in Form 130. This is intended to reduce mismatches between the salary certificate and the annual tax statement — a common issue during return filing under the current system.
Clear reporting norms have also been proposed for employees who change jobs within a single tax year. In such cases, each employer will be required to issue Part A and Part B of Form 130 for the respective period of employment. This will help ensure accurate aggregation of salary income and TDS credits, thereby reducing errors while filing returns.
During the transition phase, both old and new form numbers may coexist. Forms relating to earlier tax years will continue under the existing numbering, while the new designations will apply to tax years beginning April 1, 2026. Experts caution that this overlap could create temporary confusion in documentation and legal references, making it important for taxpayers to verify the tax year mentioned on each form rather than relying solely on the form number.
The department has reiterated that the reform does not increase the tax burden or introduce new compliance requirements. The process of claiming deductions, selecting tax regimes, filing ITR, and receiving refunds will remain broadly unchanged for salaried individuals.
Overall, the renumbering of Form 16 and Form 26AS represents a structural and digital integration measure aimed at modernising tax documentation under the new law. For taxpayers, the impact will largely be limited to nomenclature and format, with no substantive change in tax computation or filing obligations.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
