New Tax Forms 2026: Form 16 is now Form 130

New Delhi, February 16, 2026: The Indian taxation system is undergoing a historic transformation. Starting April 1, 2026, the decades-old Income Tax Act of 1961 will be replaced by the Income Tax Act, 2025. This shift isn’t just about legal jargon; it brings a complete overhaul of the compliance framework, including a massive renumbering and consolidation of tax forms.

For the average taxpayer, the most significant change is the “rebranding” of everyday documents like Form 16 and Form 26AS. Here is everything you need to know about the new names and numbers of essential income tax forms.

The Big Shift: Why the Change?

The Central Board of Direct Taxes (CBDT) has introduced the Draft Income-tax Rules, 2026, with a clear goal: Simplification. Over the years, the old system had grown cluttered with nearly 400 forms and over 500 rules.

Under the new regime:

• Total Rules will drop from 511 to 333.
• Total Forms will be slashed from 399 to 190.
• Logic-based Numbering: Forms are now numbered sequentially (1 to 190) based on their category, making them easier to track for digital systems and taxpayers alike.

New Identity for Key Tax Forms

If you are used to looking for “Form 16” every June, you’ll need to update your vocabulary. Here are the major renumbered forms:

Major Consolidation in Tax Audits

Businesses and professionals will see the biggest relief in terms of “form fatigue.” Previously, tax audits required multiple filings (3CA, 3CB, and 3CD). Under the 2026 rules, these have been merged into a single, comprehensive document: Form 26.

• Audit Reports (3CA/3CB/3CD): Now consolidated into Form 26.
• Transfer Pricing Audit (3CEB): Now Form 48.
• MAT Certification (29B): Now Form 66.

What This Means for the Common Taxpayer

1. Simpler Language, Fewer Errors

The redesigned forms are expected to use “Plain English” instead of dense legal terminology. This is intended to help “DIY” taxpayers file returns without needing a consultant for every small step.

2. Enhanced Pre-filling

The new forms are designed to be “smart.” They will leverage AI and real-time data matching to pre-fill information from your Form 168 (formerly 26AS) and AIS. This reduces the chances of receiving those dreaded “mismatch” notices.

3. Expanded HRA Benefits

In a move that will cheer many, the new rules have expanded the list of cities eligible for the 50% HRA exemption. Along with the four metros (Delhi, Mumbai, Kolkata, Chennai), cities like Bengaluru, Pune, Ahmedabad, and Hyderabad are now included in the top tier.

4. Updated Limits for Deductions

Several allowance limits that were stuck in the 90s have been revised. For example, the Children’s Education Allowance is set to rise from a measly ₹100/month to ₹3,000/month, reflecting modern living costs.

When Do You Start Using These?

It is important to note that the Assessment Year (AY) 2026-27 will be the first year these forms come into full effect for transactions occurring after March 31, 2026.

If you are filing your taxes in July 2026 for the current financial year (2025-26), you will still use the old forms. The new “Form 130” (formerly Form 16) and “Form 168” (formerly 26AS) will become the standard for the income earned in the 2026-27 financial year.