Form 16 to Form 130: New Income Tax Act brings in new forms from April 1

Form 16, synonymous with a tax deducted at source (TDS) certificate, will be replaced by Form 130 under the new Income Tax Act, 2025. The change in the form is part of an overall renumbering and revamp of forms under the new Income Tax Act, which becomes effective from April 1.

Form 16 is the TDS certificate for salary income issued annually by an employer to an employee. It provides a detailed summary of the salary earned, tax deducted and deposited, and applicable deductions.  It also applies to interest income earned by certain senior citizens. As per the tax law, it will have to be issued by June 15 of the Financial Year immediately following the Tax Year in which the income was paid, and tax was deducted.

Similarly, Form 16A, which is the TDS certificate for non-salary income such as rent, interest, professional and consultancy fees, will be renamed to Form 131, from April 1, 2026.  This will have to be issued within 15 days from the due date of furnishing the corresponding quarterly TDS statement.

Taxpayers, both salaried individuals as well as pensioners and others, require these forms for filing income tax returns, which act as proof that tax has been deducted from the individual taxpayer.

Other tax forms will also be renamed under the new tax law. Importantly, Form 26AS, which is the annual tax statement issued by the income tax department, will be renamed to Form 168. Quarterly TDS statements, which are currently named as Form 24Q, will be renamed to Form 138 under the new Income Tax Act.

Tax experts underlined that the renumbering of the forms will not have any impact on their functionality and requirements, but has been done to align them with the changed provisions in the new Act.

“The broad rationale for this consolidation is that it aims to remove duplication, simplify compliance, and align forms with the new Income‑tax Act, 2025.The renumbering of the rules and forms ensure alignment with the statutory sections under Income-tax Act, 2025 replacing “piecemeal” numbering conventions,” said Tarun Garg, Director, Deloitte India.

Many of these forms will also have pre-filled fields based on the data that the government already has through the use of technology and monitoring of transactions.

Another significant change is the renumbering of the Tax Residency Certificate application required by taxpayers to file tax claims in other countries. The application, which is now known as Form 10F, has been renamed Form 42 in the new tax regime. TRC is crucial for claiming benefits under Double Taxation Avoidance Agreements (DTAA). Taxpayer cannot obtain tax residency certificate in Form 43 in India, without filing Form 42. Aadhaar is no longer required in the personal details for filing Form 42 but PAN remains mandatory.

The Income Tax Act, 2025 will replace the current law, which dates back to 1961. While there are no changes in taxes or tax structures under the new Act, apart from the forms, several procedural changes have been brought about to reduce the compliance burden on taxpayers and bring the law in sync with modern realities.