The Income Tax Department has recently released the Draft Income Tax Rules, 2026. Many income tax rules are expected to change, and these changes will affect all taxpayers. Salaried taxpayers may also see changes in their salary structure.
Experts believe that once the Income Tax Act, 2025 comes into force, the old income tax regime could become attractive again. Let’s look at the key changes that will impact individual taxpayers.
Form 16 and Form 26AS Will Get New Names
Under the new rules, the names of some commonly used tax forms will change.
Form 16 will be renamed Form 130
Form 26AS will be renamed Form 168
Both forms are very important for taxpayers.
Form 16 is issued to salaried employees by their employers every year by June 15. It contains details of salary, TDS, tax paid, and deductions.
Form 26AS is issued by the Income Tax Department and includes all tax-related transactions of a taxpayer, such as TDS, TCS, advance tax, and tax refunds. Taxpayers can download it from the Income Tax portal.
No Extra Compliance Burden for Taxpayers
According to Brajesh Pranami, founder and CEO of Fly High Financial Services, changing the form numbers does not mean the tax rules themselves are changing. This update will not affect tax policy or increase compliance burden for taxpayers.
CA Mrinal Mehta also said that the reporting formats of Form 130 and Form 168 will remain the same as the current Form 16 and Form 26AS. The Income Tax Department will soon issue a notification explaining the filing process and deadlines.
New Income Tax Rules to Start from April 1
The Income Tax Act, 2025 is expected to come into effect from April 1 this year. Before that, the department has released the Draft Income Tax Rules, 2026 for public comments until February 22.
After receiving feedback from experts, chartered accountants, and taxpayers, the department may revise the draft. The final rules are likely to be announced within one or two months.
Only “Tax Year” Will Be Used Now
Mrinal Mehta said that one of the biggest changes under the new Act will be the use of a single term — “tax year.”
Currently, two terms are used:
Previous year
Assessment year
This often creates confusion among taxpayers. Under the new system, only “tax year” will be used.
Form 130 and Form 168 will refer to the tax year 2026–27, and this change is not expected to cause any difficulty for taxpayers.
