IT Rules 2026, New Forms, and TDS Consolidation: The Complete Professional Action Plan for Tax Year 2026-27
Quick Summary Box
| Compliance Item | Old (IT Rules 1962) | New (IT Rules 2026) | Impact |
|---|---|---|---|
| TDS certificate — salary | Form 16 | Form 130 | High — all employers |
| Declaration — no TDS | Form 15G + Form 15H | Form 121 (combined) | Medium — depositors/investors |
| Foreign remittance | Form 15CA + Form 15CB | Form 145 + Form 146 | High — companies with foreign payments |
| TDS — non-salary | 60+ sections (193–194T) | Section 393 (3 Tables) | Very High — all deductors |
| Children education allowance | ₹100/child/month | ₹3,000/child/month | High — salaried employees |
| HRA exemption cities | 4 metro cities | Expanded (Bangalore, Pune, Hyderabad, Ahmedabad added at 50%) | Medium — salaried |
| PAN quoting | Broad requirements | Streamlined — key transactions only | Medium — reduces compliance |
| Total IT Rules | 511 rules, 399 forms | 333 rules, 190 forms | Structural — simplification |
Income Tax Rules 2026 — New Forms, TDS Consolidation & Compliance Changes: Complete Action Guide for Tax Year 2026-27 (Form 130, Form 121, Section 392/393)
The Income Tax Act, 2025 would have been incomplete without a parallel overhaul of the procedural rules. The Income Tax Rules, 1962 — which had accumulated 511 rules and 399 forms over six decades — have been superseded by the Income Tax Rules, 2026 (IT Rules 2026), notified via Notification No. 22/2026 [F. No. 370142/41/2025-TPL] dated 2026.
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