Income Tax dept rolls out big changes: New form numbers to simplify ITR filing
Mumbai (The Uttam Hindu): The Income Tax Department has released a new draft of the Income Tax Rules, which proposes changing the numbering of tax-related forms, with the aim of simplifying the process of filing tax-related information for taxpayers, tax experts, and institutions. This change is being made because the new Income Tax Act, 2025, is set to come into effect on April 1.
New form templates have also been released along with this draft. Experts say that the old form numbers used until now had become quite complex due to changes over several decades. The new numbering will reduce confusion when filing taxes and eliminate the need to enter the same information repeatedly.
The new system will better integrate tax-related information with digital systems, enabling real-time data matching and verification. However, this change will require employers, tax advisors, registrars, and companies to quickly adapt their systems.
According to the draft rules, several commonly used audit and international tax forms have been combined or renumbered. Tax audit reports, previously filed in Forms 3CA, 3CB, and 3CD, will now be submitted in a single Form 26. Similarly, audit reports related to transfer pricing will now be submitted in Form 48 instead of Form 3CEB. Minimum Alternate Tax (MAT) certificates will now be submitted in Form 66 instead of Form 29B.
MAT is a 15 per cent tax levied on companies whose normal tax is less than 15 per cent of their book profits.
The form for the Tax Residency Certificate has also been changed. Form 42 will now be used instead of Form 10FA. Furthermore, information related to tax treaties (DTAAs) between two countries will now be provided in Form 41 instead of Form 10F.
The draft also changes the numbering of several TDS-related forms. Applications for reduced or zero TDS will now be filed in Form 128, while the salary-related TDS certificate will now be called Form 130.
Additionally, the old TDS return forms 24Q, 26Q, and 27Q have been renumbered. They will now be known as Form 138, Form 140, and Form 144, respectively. TCS returns will now be filed in Form 143, instead of the old Form 27EQ.
The annual tax statement, commonly known as Form 26AS, will now be known as Form 168. Similarly, Form 61A, which provides details of financial transactions, will now become Form 165.
Additionally, changes have been made to the forms related to remittances abroad. Information on foreign remittances will now be submitted in Form 145 instead of Form 15CA, while a chartered accountant's certificate will be submitted in Form 146 instead of Form 15CB.
Experts believe that these changes will make filing income tax returns easier. They will allow for clearer calculations of income and benefits, and will bring uniformity to tax rules, which will help people understand the tax process.