The government has introduced a major revamp of income tax forms under the new Income Tax Rules 2026. According to reports from Zee News, several changes in income tax forms have been introduced that taxpayers, salaried employees, pensioners and businesses should be aware of. The changes span from PAN application forms to forms relating to TDS, ensuring comprehensive coverage of taxpayer requirements. As per the latest developments, all ITR forms for AY 2026-27 have been notified via official e-Gazette, with ITR-1 & ITR-4 (Sahaj & Sugam) applicable for filing returns for FY 2025-26. Filing will commence soon on the Income Tax portal.
As reported by Zee News, the 8 key changes in income tax forms for FY 25-26 include modifications across multiple tax-related documents. The changes encompass PAN application forms, TDS certificates, and other income tax-related forms that taxpayers must be aware of to ensure compliance with the new IT rules. According to the latest updates, CBDT has issued a corrigendum (Notification No. 64/2026 dated 16 April 2026) correcting multiple drafting and reference errors in the Income-tax Rules, 2026. The changes include corrections in section/rule references, formatting, annexures, numbering, and terminology across various forms and provisions.
Form 121 has replaced 15G and 15H starting April 2026, making tax declarations significantly easier for taxpayers. As reported by NCFE India, this consolidation eliminates the need for multiple forms and streamlines the process. Form 121 is now the sole form for tax declarations, reducing complexity and improving compliance. Taxpayers can access complete information about Form 121 at https://www.incometaxindia.gov.in/documents/d/guest/fn-121. This simplification represents a major improvement in tax declaration procedures, making it easier for taxpayers to comply with their obligations.
Several new compliance requirements have been introduced under the Income Tax Act, 2025. CBDT has prescribed procedure for declaration under Form 121 and allotment of Unique Identification Number (UIN) in cases where no TDS is deducted. Payers must verify declarations, generate a 26-character UIN for each case, and report details quarterly through Part B. Reporting is mandatory even if no tax is deducted. The new system ensures better tracking and compliance, with these provisions effective from 1 April 2026. Additionally, MCA has amended DIR-3 KYC compliance, effective 31st March 2026, requiring directors holding DIN as on 31st March to file DIR-3 KYC Web once every three financial years by 30th June. Any change in mobile, email or address must be updated within 30 days.
Under the new 2026 tax rules, senior citizens are set to receive several special benefits related to taxation and financial savings. According to DAR FOCUS, the changes aim to reduce financial burden and improve support for elderly taxpayers. Key benefits include relaxed tax slabs for senior citizens, higher relief on FD interest income, easier ITR-related provisions, and improved medical deduction benefits. These enhancements specifically target the financial needs and compliance requirements of senior taxpayers, providing targeted relief through simplified processes and enhanced deductions.
As per CBDT Press Release dated 1st April 2026, the Income-tax Act, 2025 has come into force from 1st April 2026, replacing the Income-tax Act, 1961. The release states that the new law is aimed at simplifying and modernising direct tax provisions through simpler language, a streamlined structure and easier compliance. The Income-tax Act, 2025 introduces significant changes including TDS @10% on payments to partners (salary, remuneration, interest, etc.) as per Section 393 and property TDS simplified through Form 141. Partners can apply for a Lower/Nil TDS Certificate under Section 395(1) by filing Form 128 to reduce or eliminate TDS, improving liquidity. The new act also introduces penalty increases from ₹1,000 to ₹25,000 from April 2026 for failing to provide business information to tax officers.
