Mumbai, February 9: The Income Tax Department has released a new draft of income tax regulations, proposing changes to the numbering of tax-related forms. This initiative aims to streamline the process for taxpayers, tax experts, and institutions when filling out tax information. The changes are being implemented in anticipation of the new Income Tax Act 2025, set to take effect on April 1.
Along with the draft, new form templates have been introduced. Experts note that the old form numbers had become quite complex over decades of use. The new numbering system is expected to reduce confusion during tax filing and eliminate the need to repeatedly enter the same information.
The new system will also enhance the integration of tax-related information with digital systems, facilitating real-time data matching and verification. However, employers, tax advisors, registrars, and companies will need to adapt their systems promptly due to these changes.
According to the draft regulations, several frequently used audit and international tax forms have been consolidated or renumbered. The tax audit report, previously submitted using forms 3CA, 3CB, and 3CD, will now be provided in a single form, 26. Similarly, transfer pricing audit reports will now be submitted using form 48 instead of form 3CEB. The certificate related to Minimum Alternate Tax (MAT) will now be filed using form 66 instead of form 29B.
MAT is a 15% tax imposed on companies whose regular tax is less than 15% of their book profits.
The form for the Tax Residency Certificate has also been updated. It will now require form 42 instead of form 10FA. Additionally, information related to tax treaties between two countries (DTAA) will now be submitted using form 41 instead of form 10F.
The draft also includes changes to the numbering of several TDS-related forms. Applications for lower or zero TDS will now be made using form 128, while the TDS certificate related to salary will now be referred to as form 130.
Furthermore, the old TDS return forms 24Q, 26Q, and 27Q have been renumbered to forms 138, 140, and 144, respectively. The TCS return will now be filed using form 143 instead of the old form 27EQ.
The annual tax statement, commonly known as form 26AS, will now be referred to as form 168. Likewise, the form for reporting financial transactions, previously form 61A, will now be form 165.
Changes have also been made to forms related to foreign remittances. Information on foreign remittances will now be provided using form 145 instead of form 15CA, while the Chartered Accountant’s certificate will now be submitted using form 146 instead of form 15CB.
Experts believe that these changes will make filing income tax returns significantly easier. This will allow for clearer calculations of income and benefits, promoting uniformity in tax regulations and helping individuals better understand tax-related processes.