The Income Tax Rules 2026 have introduced comprehensive changes to India's tax documentation system, with six key forms undergoing significant revisions. According to reports from Mint, these changes represent a major overhaul aimed at streamlining compliance and improving tax filing accuracy nationwide. The new framework merges multiple forms to create unified systems, with Form 132 replacing four separate TDS certificates and Form 121 combining Forms 15G and 15H into a single declaration form.
The most significant change involves unified TDS certificates now covered under Form 132, which handles rent, property transactions, technical services, and Virtual Digital Assets (VDAs). As reported by Mint, PAN application forms for Indian individuals, entities, foreign individuals and entities have been consolidated into Forms 93, 94, 95 & 96 and Forms 49A & 49AA. Additionally, Form 39 has been introduced to simplify claiming tax relief on arrears, gratuity, retrenchment compensation, and pension commutation.
A major innovation is the introduction of Form 168 (12BB), which serves as the new Annual Information Statement (AIS) with Taxpayer Information Summary (TIS) and other essential details. According to Mint, this form is auto-generated and dynamically updated by the IT Department, helping minimize mismatches, omissions and errors during ITR filing. The new Form 124 has been introduced to cater to employee declaration forms for deductions such as HRA, LTA, home loan interest, and tax-saving investments.
The most significant change under the Income Tax Act 2025 is that PAN has become mandatory for all high-value financial transactions, replacing the previous Form 60 system. As reported by Ujjivan Small Finance Bank Limited, Form 60 has been replaced by Form 97, which is structurally different and designed for digital reporting with pre-filled information to minimize errors. The new rules ensure that large transactions leave a clear paper trail and are consistently linked to a verified identity, with Form 98 introduced for entities receiving Form 97 declarations to ensure complete reporting transparency.
The changes aim to reduce anonymous transactions and bring more activity into the formal financial system, aligning India's compliance framework with modern digital reporting standards. According to Ujjivan Small Finance Bank Limited, the new framework is designed to reduce duplication and streamline tax compliance, making the process more seamless and time-saving for taxpayers. The Annual Information Statement in Form 168 provides taxpayers with a more comprehensive record of financial transactions linked to their PAN, enhancing transparency, accuracy and ease of compliance under the new regime.
