Income-Tax Forms Set for Revision Under Draft Rules 2026
The draft Income-tax Rules for 2026 introduce several income-tax forms that were previously outlined under the Income-tax Rules of 1962. Although the majority of these forms maintain their original numbering and descriptions, the references to sections have been updated to correspond with the provisions of the Income-tax Act, 2025. Additionally, the draft includes several new forms aimed at addressing key areas, along with significant revisions to existing forms.
Understanding Tax Audit
Forms 3CA, 3CB, and 3CD are essential documents that function as the audit report and the statement of particulars that must be provided. These forms play a critical role in ensuring compliance with regulatory requirements.
- Previously, these forms were mandated under Section 44AB of the Act.
- According to the proposed regulations, it is essential to provide the same audit report as mandated by Section 63 of the Act.
TDS Returns Filing
Form 24Q plays a crucial role as the quarterly statement used for reporting tax deducted at source on employee salaries. This form is essential for employers to accurately disclose the amount of tax withheld from their employees' earnings.
- The matter was previously documented under Section 200(3) of the Act.
- According to the updated regulations, it is now mandatory to submit filings under Section 397(3) of the Act.
Form 26Q continues to serve as the quarterly statement for reporting tax deducted at source on payments other than salary, with the section reference now updated to Section 397(3)(b) of the Act.
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Understanding Foreign Remittance
Form 15CA is an important declaration that individuals and entities must submit for any payments made to non-residents.
- Form 15CB serves as an essential accountant's certificate for facilitating payments made to non-residents.
- Certain forms continue to remain applicable under the proposed rules.
How Foreign Tax Credit Works
Form 67 is an important document used for reporting income earned from foreign countries or specified territories outside of India. It also serves as a means for taxpayers to claim the Foreign Tax Credit. This form helps individuals ensure compliance with tax regulations while optimising their tax benefits.
A new procedure has been introduced to communicate the resolution of disputes regarding foreign taxes for which credits have yet to be claimed.
Contributions
Form 10BD is an essential document that serves as the statement, or correction statement, required to be filed by the donee.
- Form 10BE continues to serve as the certificate of donation.
- The proposed rules align these forms with Section 354 of the Act.
Permanent Account Number (PAN)
Forms 49A and 49AA remain the designated applications for obtaining a Permanent Account Number (PAN) in India. There have been no alterations to their format or intended use, ensuring that individuals can continue to rely on these forms for their PAN allotment needs.
Tax Assessment of Fair Value
The proposed rules introduce new forms for both the application process to register as a valuer and for the reporting of asset valuations. These specific forms were not previously established, aiming to streamline and standardise the registration and reporting processes in the valuation field.
The Income Tax Department has officially opened a consultative window, inviting stakeholders to provide strategic inputs and feedback on the Draft Rules and statutory forms under the Income Tax Act, 2025. With this landmark legislation scheduled for implementation on April 1, 2026, the consultation offers professionals a crucial opportunity to help shape the procedural framework of India’s modernised tax ecosystem.
Also Read: How Income Tax Software Companies Should Prepare for Act 2025
In an effort to enhance stakeholder engagement, the draft Income-tax Rules, 2026, along with the associated forms, have been made available on the official website of the Income Tax Department ahead of their official notification. This initiative aims to encourage broader participation in the consultation process.
A new utility is now available on the e-filing portal, allowing stakeholders to submit their feedback. This feature has been live and accessible to all users since February 4, 2026.