Income Tax Alert: PAN Application To TDS Forms, 7 Key Changes That Every Taxpayer Must know For ITR Filing

New income tax reforms has taken effect on April 1, 2026. The Income Tax Department has introduced sweepingchanges to the forms used for income tax filing, PAN applications, TDScompliance and e- filing. Here is a structured breakdown of seven critical income tax form changes that directly affect taxpayers and businesses across India.

The Income Tax returns deadline for AY 2026-27, covering income earned inFY2025-26 is fixed on July 31, 2026. However, any transaction or filing fromApril 1st, 2026, onwards falls under the new framework.

The government says these changes are aimed at simplifying compliance, improvingtransparency and modernizing India's tax reporting framework under the newIncome Tax Act.

Here are some reforms that took place as mentioned in the PIB.

1. PAN Application Forms - Form 49A And Form 49AA Replaced by Forms 93, 94 and96

The IT department has introduced new forms for PAN card applications. These areForm 93, meant for individual Indian citizens; Form 94, meant for Indian entities; Form 95, for non-resident individuals; and Form 96 for foreign companies. Each form carries different documentation requirements aligned with the application's residency and legal status.

2. Form 16 Replaced by 130

Form No. 130 is an annual Tax Deducted at Source (TDS) certificate that an employer issues to a salaried employee or a pensioner. It provides a detailed summary of the salary earned, tax deducted and deposited, and applicable deductions, as per the guidelines of the Income Tax Department. This form certifies and serves as proof that tax has been deducted from salary income and deposited with the Government. Furthermore, the form can be used for filing interest income earned by specified senior citizens as per provisions of section 402(39) of the Income-tax Act, 2025, which enables the deductee to claim credit for TDS deducted and deposited on their behalf by the deductor.

3. Form 16A, Form 16 Replaced by Form 131 & Form 130

Earlier, an employer used to issue Form 16 which included details of salary income and was used for filing ITR. However, after April 2026, Form 16 isreplaced by Form 130. Not just that, Form 16A which compiles income from other sources rather than salary, is also replaced by Form 131.

4. Quarterly TDS Returns, Form 24Q Becomes Form 138, Form 138, Form 26Q Becomes Form 140

Form No. 138 is a quarterly statementfiled by employers who deduct tax at source from salaries paid to employees under Section 392 or by the specified bank for the income paid to specified senior citizens. Form No. 140 is a quarterly statement filed by deductors responsible for deducting tax at source on non-salarypayments such as commission, brokerage, professional fees, and rent.

5. Form 15G and Form 15H Merged into Form 121

Taxpayers used Forms 15G and 15H to avoid TDS deduction when their estimated taxliability was nil. These Forms are now merged with Form 121, simplifying thedeclaration process.

6. Form 26AS Replaced by Form 168: Annual Information

Statement. Form 26AS has served as the primary tax passbook for the Indian taxpayers, which is a consolidated view for all TDS deducted, advance tax paid and other tax credits linked to the taxpayers' PAN Card.

Now, the Annual Information Statement forTax Year 2026-27 will be in Form 168 and will reflect information for FY2026-27 under the new Act.

7. Form 13 Replaced by Form 128

Businesses and professionals whose income streams attract standard Tax Deducted at Source (TDS) rates often apply for lower or nil
TDS deduction certificates when their actual tax liability is less than theamount being deducted. This applicationwas previously submitted as Form 13; it has now been replaced by Form 128under the new Income Tax form changes.