Tag: TDS

NRI Property Sale TDS: Lower Deduction Certificate and Repatriation

Selling a flat or plot in India while living abroad is common, but the tax mechanics surprise many families. The biggest one is NRI property sale TDS: when the seller is a non-resident, the buyer must deduct tax at source at much higher rates than the 1% that applies between residents, and often on the full sale price unless a lower deduction certificate is obtained.

This guide explains the rates, what changed for buyers in 2026, how a lower deduction certificate helps, and the steps to repatriate the sale proceeds.

Key takeaways

When a non-resident sells property in India, the buyer deducts TDS under the non-resident provisions (old section 195, now section 393(2) of the Income-tax Act 2025), not the 1% resident rule.
For long-term capital gains (property held for more than 24 months), the base rate is 12.5%, plus surcharge and 4% cess; short-term gains are taxed at slab rates, so TDS is usually at the highest rate.
From 1 October 2026, resident individual and HUF buyers can deposit and report this TDS using their PAN through Form 141, without obtaining a TAN.
A lower deduction certificate (Form 128, formerly Form 13) lets TDS be deducted on the actual estimated gain rather than the full price.
Proceeds can be repatriated from the NRO account within the USD 1 million per financial year facility, with Forms 145 and 146 (formerly 15CA and 15CB).

How NRI property sale TDS works

The buyer, whether resident or non-resident, must deduct tax when paying a non-resident seller. The obligation arises at the time of payment or credit, whichever is earlier, including on advances and instalments.

Without a certificate, buyers commonly deduct on the full sale consideration, because they cannot verify the seller’s cost of acquisition. That can lock up a large amount in TDS far exceeding the actual tax, which is then recovered only through a refund after filing the return.

Rates in brief

Type of gain	Holding period for property	Base tax rate	TDS in practice
Long-term capital gain	More than 24 months	12.5% (without indexation)	12.5% plus surcharge and 4% cess
Short-term capital gain	24 months or less	Slab rates	Usually 30% plus surcharge and 4% cess

Surcharge depends on the amount of consideration and is capped at 15% for capital gains. For a sale above ₹1 crore, the effective long-term TDS rate works out to about 14.95% of the amount on which TDS is deducted.

What changed for buyers in 2026

Until recently, every buyer purchasing from an NRI had to obtain a TAN, file a quarterly non-resident TDS return and issue a TDS certificate. For individual homebuyers, this was a real hurdle.

For transactions from 1 October 2026, the CBDT has revised the forms so that resident individual and HUF buyers can pay and report TDS on purchases from non-residents using their PAN through Form 141, the challan-cum-statement that replaced Form 26QB. The deadline is 30 days from the end of the month in which tax is deducted, and the buyer then issues the certificate in Form 132 to the seller. Transactions before this date follow the earlier TAN-based process, so check which regime applies to your payment dates.

Buyers who are companies, firms or other entities continue to deduct and report through their TAN.

The lower deduction certificate

A seller who expects the actual tax to be much lower than the TDS can apply online for a certificate for lower or nil deduction in Form 128. The Assessing Officer considers the cost of acquisition, improvement costs and any planned reinvestment in eligible assets, and issues a certificate specifying the rate and amount for that buyer.

Worked example. Priya, an NRI in Canada, sells a flat in Noida for ₹1.5 crore. She bought it in 2012 for ₹70 lakh.

Without a certificate: the buyer deducts about 14.95% on ₹1.5 crore, roughly ₹22.4 lakh.
With a certificate based on a long-term gain of about ₹80 lakh: TDS reduces to roughly ₹12 lakh, and less still if she reinvests in a new residential house or eligible bonds.

Apply early. Processing takes time, and the certificate must be in hand before the buyer pays. Share the certificate with the buyer so that it is quoted correctly in the TDS filing.

Reducing the tax itself

Section 54: long-term gains reinvested in a residential house in India, within the prescribed time, can be exempt, subject to the conditions and overall cap.
Section 54EC: investment of long-term gains in specified bonds within six months, up to the annual limit.
Capital gains account scheme: if reinvestment is planned but not done by the return due date, deposit the amount in the scheme.
Treaty relief: under most tax treaties, gains from immovable property are taxable in the country where the property is situated, so India retains the right to tax. Credit for Indian tax may be available in your country of residence.

Filing an Indian return is essential to claim any excess TDS as a refund. Your residential status for the year decides the return form and which income is reported.

Repatriating the sale proceeds

Receive proceeds in your NRO account (or NRE, where specifically permitted).
Obtain the accountant’s certificate in Form 146 (formerly 15CB), confirming that tax has been paid or deducted.
File Form 145 (formerly 15CA) on the income-tax portal.
Submit these with the bank’s remittance form and sale documents.

Under FEMA, NRIs can remit up to USD 1 million per financial year from NRO balances, including property sale proceeds, subject to documentation. Special rules apply where property was bought from foreign or NRE funds, and for inherited property, so keep the purchase and inheritance documents ready.

Frequently asked questions

Is TDS on property bought from an NRI 1% like a resident sale?

No. The 1% rate applies only when the seller is resident. For a non-resident seller, TDS is deducted at the rates applicable to capital gains, plus surcharge and cess.

Do I still need a TAN to buy property from an NRI?

For transactions from 1 October 2026, resident individual and HUF buyers can use their PAN and file Form 141. Earlier transactions and entity buyers follow the TAN-based process.

How long does a lower deduction certificate take?

It varies with the case and workload. Apply as soon as the sale is agreed and before the first payment, including any advance.

How much of the sale money can an NRI send abroad?

Up to USD 1 million per financial year from the NRO account, including property sale proceeds, after completing the tax and bank documentation.

If you are an NRI planning to sell property in India, or buying from one, we would be glad to help with the certificate, TDS filings and repatriation steps.

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This article is general information based on the law as of September 2026, and is not legal or tax advice. Please check the facts of your own case with a professional before acting.

October 27, 2026

TDS on Rent: Sections 194-I and 194-IB, Thresholds and Compliance

TDS on rent affects almost every business and many salaried families who pay high rent. The rules differ depending on who pays the rent, what is being rented and, from 1 April 2026, which Income-tax Act governs the payment. Getting the basics right avoids interest, late fees and awkward conversations with landlords about missing credits.

This guide explains the two regimes carried over from sections 194-I and 194-IB, the thresholds and rates, how GST and advances are treated, and the new forms under the Income-tax Act 2025.

Key takeaways

Businesses and other specified payers deduct TDS on rent at 2% for plant, machinery or equipment and 10% for land, building or furniture, where rent exceeds ₹50,000 for a month or part of a month.
Individuals and HUFs who are not covered by the old section 194-I deduct 2% where monthly rent exceeds ₹50,000, generally once a year; no TAN is needed.
From 1 April 2026 both are part of the TDS table in section 393(1) of the Income-tax Act 2025; rates and thresholds were retained.
Individual tenants now use Form 141 (replacing Form 26QC) and issue Form 132 to the landlord; business payers report in Form 140 and issue Form 131.
Where GST is charged separately on rent, TDS is deducted on the rent excluding GST.

Two regimes for TDS on rent

Rent for this purpose is broadly defined. It covers payments under any lease, sub-lease, tenancy or arrangement for the use of land, building (including factory buildings), land appurtenant to a building, machinery, plant, equipment, furniture or fittings, whether or not owned by the payee.

Point	Business payers (old section 194-I)	Individual/HUF tenants (old section 194-IB)
Who deducts	Companies, firms, LLPs, and individuals/HUFs whose accounts must be audited under the tax audit provisions	Individuals and HUFs not covered in the first column
Threshold	Rent above ₹50,000 for a month or part of a month	Rent above ₹50,000 for a month or part of a month
Rate	2% plant/machinery/equipment; 10% land/building/furniture	2%
When	At credit or payment, whichever is earlier	Generally once, on rent for the last month of the tax year or of the tenancy, if earlier
TAN	Required	Not required; PAN-based filing
Return/statement	Quarterly return (Form 140 from tax year 2026-27)	Challan-cum-statement (Form 141 from 2026-27)

The ₹50,000-per-month test for business payers applies from 1 April 2025. Before that, the threshold was an annual figure, so older rent agreements and ERP settings may need updating.

What changed from 1 April 2026

The Income-tax Act 2025 replaced the 1961 Act from 1 April 2026. Non-salary TDS provisions are now set out in a table under section 393(1), and rent appears as separate entries in that table. The substance of the rules was carried over, but forms and references changed.

A practical point for March 2026: the Act that applies depends on the earlier of credit or payment. Rent for March 2026 credited on 31 March 2026 remains under the 1961 Act, even if paid in April, and is reported in the old forms. For a broader view, see our TDS rate chart for FY 2026-27.

Item	Up to 31 March 2026	From 1 April 2026
Individual tenant’s challan-cum-statement	Form 26QC	Form 141
Certificate by individual tenant	Form 16C	Form 132
Business payer’s quarterly return	Form 26Q	Form 140
Business payer’s certificate	Form 16A	Form 131
Landlord’s credit statement	Form 26AS	Form 168

Worked examples

Example 1: a company renting an office

A company pays office rent of ₹1,20,000 per month plus 18% GST shown separately. Rent exceeds ₹50,000 for the month, so it deducts 10% of ₹1,20,000, that is ₹12,000 each month, and deposits it by the 7th of the next month.

Example 2: a salaried family renting a flat

A salaried individual pays ₹60,000 per month for a flat. Rent exceeds ₹50,000 per month, so TDS at 2% applies. Deducted once on the March rent, the TDS for a full year is 2% of ₹7,20,000, that is ₹14,400, deducted from the last month’s rent and paid through Form 141.

If the landlord does not furnish a PAN, a higher rate applies, but for individual tenants the deduction is capped at the rent for the last month of the year or tenancy.

Practical issues and how to handle them

Security deposits: a refundable deposit is not rent and does not attract TDS. A non-refundable or adjustable deposit that is really advance rent generally does.
Advance rent: TDS applies at the time of payment, since the earlier of credit or payment triggers deduction.
Common area maintenance: if charged separately under a distinct arrangement, it may fall under the TDS provision for contracts rather than rent; review the agreement.
Multiple landlords: where a property is jointly owned and each co-owner receives a defined share, the threshold is generally tested on each owner’s share.
Non-resident landlords: rent paid to a non-resident is dealt with under the separate non-resident TDS provisions, often at higher rates and with a TAN requirement.
Lower deduction certificate: a landlord with lower tax liability can apply for a certificate for lower or nil deduction; the tenant then deducts at the certified rate.

Due dates and consequences

Business payers deposit TDS by the 7th of the following month (30 April for March) and file quarterly returns.
Individual tenants file Form 141 within 30 days from the end of the month of deduction and issue the certificate after downloading it from the TRACES portal.
Late deduction or deposit attracts interest; late statements attract a fee; and for businesses, non-deduction can lead to a partial disallowance of rent expense until TDS is paid. Our note on TDS default notices explains how to correct defaults.

Frequently asked questions

Do I need a TAN to deduct TDS on house rent?

No. An individual or HUF tenant not covered by the business-payer rules uses a PAN-based challan-cum-statement, now Form 141, without a TAN.

Is TDS deducted on the GST portion of rent?

No, where GST is shown separately in the invoice, TDS is deducted on the rent excluding GST.

My rent is ₹45,000 a month. Do I deduct TDS?

No. The obligation arises only where rent exceeds ₹50,000 for a month or part of a month.

Which form should I use for rent paid in April 2026?

Individual tenants use Form 141 and business payers report in Form 140, as the payment falls under the Income-tax Act 2025.

If you would like help setting up rent TDS for your offices or reviewing your tenancy payments for the year, our team would be glad to assist.

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This article is general information based on the law as of September 2026, and is not legal or tax advice. Please check the facts of your own case with a professional before acting.

October 25, 2026

Section 194Q TDS on Purchase of Goods: Applicability and Practical Issues

Section 194Q TDS on purchase of goods is one of those provisions that looks simple on paper but creates daily questions for accounts teams: which vendors are covered, when to start deducting, what to do with GST and purchase returns, and how the new Income-tax Act 2025 changes the paperwork. The good news is that once the rules are set up in your ERP, the provision runs almost on autopilot.

This guide explains who must deduct, how the ₹50 lakh threshold works, the practical issues buyers face most often, and what changed from 1 April 2026 when section 194Q was carried into section 393(1) of the new Act.

Key takeaways

A buyer whose turnover exceeded ₹10 crore in the preceding financial year must deduct TDS on purchases of goods from a resident seller once purchases from that seller cross ₹50 lakh in the year.
The rate is 0.1% on the amount above ₹50 lakh; it rises to 5% if the seller has not furnished a PAN.
From 1 April 2026 the same obligation sits in section 393(1) of the Income-tax Act 2025; rates and thresholds were carried over, but forms are renumbered (Form 26Q is now Form 140, Form 16A is now Form 131).
TCS on sale of goods under the old section 206C(1H) was withdrawn from 1 April 2025, so buyer-side TDS is now the only mechanism for most goods transactions.
Clean vendor masters, turnover checks at the start of each year and a ledger-level trigger at ₹50 lakh prevent most defaults.

Who must deduct section 194Q TDS on purchase

The provision applies to a buyer, meaning a person whose total sales, gross receipts or turnover from business exceeded ₹10 crore in the financial year immediately preceding the year of purchase. The legal form of the buyer does not matter; companies, firms, LLPs and individuals with large businesses are all covered once they cross this turnover line.

The seller must be a resident. Purchases from non-residents are dealt with under the separate non-resident TDS provisions. The obligation arises only on the portion of purchases from a single seller that exceeds ₹50 lakh in the year, so small and occasional vendors are naturally outside its scope.

A few situations where this TDS does not apply:

Where tax is deductible under any other TDS provision on the same transaction.
Where the transaction is covered by TDS on e-commerce operators (the old section 194O), which takes priority.
Where tax is collectible at source under the TCS provisions other than the withdrawn sale-of-goods TCS.
Certain notified persons and specified transactions, which the government can exclude by notification. Check the current list before relying on any exclusion.

How the ₹50 lakh threshold works: a worked example

The threshold is counted per seller, per financial year, and it resets every 1 April. TDS is charged only on the excess.

Month	Purchase from Seller A (₹)	Cumulative (₹)	Amount liable to TDS (₹)	TDS at 0.1% (₹)
April–July	42,00,000	42,00,000	Nil	Nil
August	12,00,000	54,00,000	4,00,000	400
September	10,00,000	64,00,000	10,00,000	1,000

In this example the buyer starts deducting in August, only on the ₹4 lakh that crosses the threshold, and on every rupee of purchases from that seller thereafter in the same year. Many businesses simply configure their ERP to deduct from the first invoice for vendors who routinely cross ₹50 lakh; that is acceptable as long as the total deducted is correct by year-end.

Timing, GST and other practical issues

When to deduct

TDS is deducted at the time of credit to the seller’s account or payment, whichever is earlier. For most businesses this means at the time the purchase invoice is booked.

GST component

Where TDS is deducted at the time of credit and the GST amount is shown separately on the invoice, TDS is computed on the value excluding GST. Where TDS is deducted on an advance payment, the entire payment is treated as the base, because the GST split is not yet known.

Purchase returns and discounts

If goods are returned after TDS has been deducted, the usual practical approach is to adjust the excess against subsequent purchases from the same seller within the year, rather than seeking a refund of the TDS already deposited.

Capital goods and freight

The provision covers purchase of goods generally, so capital goods are included. Freight or other services invoiced separately may attract a different TDS provision, so map each expense head carefully.

What changed from 1 April 2026 under the Income-tax Act 2025

The Income-tax Act 2025 came into force on 1 April 2026 and uses the concept of a tax year in place of previous year and assessment year. All non-salary TDS provisions for residents have been consolidated into a table under section 393(1), and TDS on purchase of goods now sits in that table. The rate (0.1%), the ₹10 crore turnover test and the ₹50 lakh threshold were retained.

What does change is the paperwork:

Item	Up to 31 March 2026	From 1 April 2026
Charging provision	Section 194Q (1961 Act)	Section 393(1) (2025 Act)
Quarterly TDS return	Form 26Q	Form 140
TDS certificate to seller	Form 16A	Form 131
Seller’s tax credit statement	Form 26AS	Form 168

The practical rule is that the law applicable to a transaction depends on when the earlier of credit or payment happened. Invoices credited on or before 31 March 2026 remain under the 1961 Act, even if paid later. For a full map of renumbered forms, see our guide to new income-tax form numbers.

Compliance checklist for buyers

Confirm the turnover test each April based on the audited or final figures for the preceding year.
Tag vendors in the master: resident or non-resident, PAN available, goods or services, and whether any other TDS or TCS provision applies.
Set a cumulative trigger at ₹50 lakh per seller in your ERP or purchase register.
Deposit TDS by the 7th of the following month (30 April for March deductions).
File the quarterly return (Form 140 from tax year 2026-27) and issue Form 131 certificates to sellers on time.
Reconcile quarterly with sellers so that their Form 168 matches your books.

What happens if TDS is missed

Missed deduction can lead to interest for the period of delay, late filing fees for returns, and a disallowance of 30% of the purchase amount while computing business income until the TDS is deposited. The buyer can also be treated as an assessee in default. If you receive a notice, our article on TDS default notices, late fee and interest explains how to respond calmly and correct the position.

The reassuring part is that most defaults under this provision arise from set-up gaps rather than intent, and they are straightforward to fix with a correction statement and payment of interest.

Frequently asked questions

Does section 194Q apply if my turnover is below ₹10 crore?

No. The obligation arises only for buyers whose business turnover exceeded ₹10 crore in the preceding financial year. The test is repeated every year.

Is TDS deducted on the full ₹50 lakh or only on the excess?

Only on the amount by which purchases from a seller exceed ₹50 lakh in the financial year. Purchases up to ₹50 lakh are not subjected to this TDS.

Should TDS be calculated on the GST-inclusive amount?

If TDS is deducted when the invoice is credited and GST is shown separately, deduct on the value excluding GST. For advance payments, deduct on the full amount paid.

Which return do I file for purchases from April 2026 onwards?

For deductions from 1 April 2026, the quarterly statement for non-salary TDS is Form 140, which replaces Form 26Q under the Income-tax Rules 2026.

If you would like help setting up TDS on purchases in your ERP or reviewing vendor ledgers before your next quarterly return, our team is happy to assist.

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This article is general information based on the law as of September 2026, and is not legal or tax advice. Please check the facts of your own case with a professional before acting.

October 23, 2026

TDS Rate Chart FY 2026-27: Key Sections, Thresholds and Rates

The start of tax year 2026-27 brought a big change in form, though not much in substance, for anyone deducting tax at source. Under the Income-tax Act, 2025, TDS on salary is in section 392, and most other TDS provisions for residents are consolidated in the tables of section 393, with payment codes used in statements instead of the familiar section numbers. This guide sets out the key TDS rates FY 2026-27 in one practical reference.

The rates and thresholds largely continue from the Finance Act 2025, which raised several thresholds from 1 April 2025. Budget 2026 did not make broad changes to the TDS structure. The chart below uses the old 1961 Act section numbers as a familiar reference.

Key takeaways

Salary TDS is under section 392; most other resident TDS items are in section 393, with payment codes replacing section references in TDS statements.
Rent on land or building attracts 10% TDS where rent exceeds ₹50,000 a month or part of a month.
Contractors attract 1% (individual or HUF) or 2% (others), above ₹30,000 per payment or ₹1 lakh in the year.
Professional fees attract 10%, and technical services 2%, above ₹50,000 a year.
Where the payee does not furnish PAN, a higher rate, generally 20%, applies, with lower special rates for some items.

TDS rates FY 2026-27: chart for resident payees

Nature of payment	Earlier section (1961 Act)	Threshold	Rate
Salary	192	Basic exemption, as per regime	Slab rates
Interest on securities	193	₹10,000	10%
Dividend	194	₹10,000 per year	10%
Interest by banks, co-op banks, post office	194A	₹50,000 (₹1 lakh for senior citizens)	10%
Other interest	194A	₹10,000	10%
Lottery, crossword, online games winnings	194B, 194BA	₹10,000 per transaction (lottery); net winnings (online games)	30%
Insurance commission	194D	₹20,000	2% (non-company)
Commission or brokerage	194H	₹20,000	2%
Rent: plant and machinery	194-I	₹50,000 per month	2%
Rent: land or building	194-I	₹50,000 per month	10%
Rent by certain individuals or HUF	194-IB	₹50,000 per month	2%
Purchase of immovable property	194-IA	Consideration ₹50 lakh or more	1%
Contractors	194C	₹30,000 single; ₹1 lakh aggregate	1% (individual or HUF); 2% (others)
Professional fees	194J	₹50,000	10%
Technical services, certain royalties, call centres	194J	₹50,000	2%
Remuneration to partners	194T	₹20,000	10%
Benefits or perquisites of business	194R	₹20,000	10%
Purchase of goods (buyer turnover above ₹10 crore)	194Q	Purchases above ₹50 lakh from a seller	0.1%
E-commerce operators	194-O	₹5 lakh for individual or HUF sellers	0.1%
Virtual digital assets	194S	₹10,000 (₹50,000 for specified persons)	1%
Compensation on compulsory acquisition	194LA	₹5 lakh	10%

Thresholds are generally per payee per financial year unless shown otherwise. Always confirm the payment code and any conditions in the section 393 table before deducting.

Worked examples

Office rent

A company pays ₹75,000 a month to an individual landlord for office premises. Since monthly rent exceeds ₹50,000, TDS at 10% applies: ₹7,500 a month, deposited by the 7th of the following month.

Contractor with a mix of bills

A firm pays a housekeeping contractor (a company) bills of ₹22,000, ₹18,000, ₹26,000 and ₹40,000 in the year. No single bill crosses ₹30,000 until the fourth, but the aggregate crosses ₹1 lakh with the fourth bill (₹1,06,000). TDS at 2% applies on the aggregate, ₹2,120, deducted from the fourth payment.

Professional and technical fees

A start-up pays an independent designer ₹80,000 for design services (professional) and a cloud consultant ₹60,000 for technical services. TDS is 10% (₹8,000) on the first and 2% (₹1,200) on the second, as each exceeds ₹50,000 for the year.

Higher rates and lower deduction certificates

No PAN: a higher rate applies, generally 20%, with special rates for items such as purchase of goods and e-commerce. The earlier section 206AB (higher rate for non-filers) was removed by the Finance Act 2025, so payers no longer need to run that check.
Lower or nil deduction: a payee can apply for a certificate for lower or no deduction, and the payer must follow the certificate.
Declarations: eligible individuals can furnish declarations for non-deduction on interest and certain income if their total income is below the taxable limit, subject to the conditions in the law.

Deposit, returns and certificates

Deposit TDS by the 7th of the following month; for March, by 30 April.
File quarterly TDS statements using the new payment codes; ensure PANs are verified.
Issue certificates: salary certificates (earlier Form 16, now Form 130) and non-salary certificates (earlier Form 16A, now Form 131).
Reconcile deductions with the annual tax statement (earlier Form 26AS, now Form 168) before year-end.

For an overview of other renumbered forms, see our guide on new income tax form numbers in 2026.

Common mistakes to avoid

Treating technical services as professional fees, or the reverse, leading to short or excess deduction.
Missing the aggregate threshold for contractors by looking only at individual bills.
Deducting TDS on rent including GST where the agreement shows GST separately; TDS is generally on the amount excluding GST in such cases.
Using the wrong payment code under the new Act, causing mismatches in the payee’s credit.
Not applying the 20% rate where PAN is missing or invalid.

The income tax department’s website publishes the section 393 tables and payment codes, and is the best place to confirm edge cases.

Frequently asked questions

Which section covers TDS in the Income-tax Act, 2025?

Salary TDS is in section 392, and most other TDS on payments to residents is in section 393, arranged in tables with payment codes.

What is the TDS rate on rent for FY 2026-27?

10% for land or building and 2% for plant and machinery, where rent exceeds ₹50,000 for a month or part of a month.

Did Budget 2026 change TDS rates?

Budget 2026 largely retained the rates and thresholds set by the Finance Act 2025. The main change for deductors is the new section structure and payment codes.

What happens if TDS is not deducted?

Interest, disallowance of the expense to the extent specified, and possible penalties can follow. Our guide on TDS default notices explains the consequences in detail.

If you would like help mapping your vendor payments to the correct TDS codes and rates for FY 2026-27, our team will be glad to assist.

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This article is general information based on the law as of September 2026, and is not legal or tax advice. Please check the facts of your own case with a professional before acting.

October 20, 2026

New Income Tax Form Numbers from 2026: Form 16, 26AS, 12BB and More Mapped

The new income tax forms 2026 are one of the most practical changes that came with the Income-tax Act 2025. Along with the new Act, the Income-tax Rules, 2026 took effect from 1 April 2026 and renumbered almost every form. The familiar Form 16 is now Form 130, Form 26AS is Form 168, and the employee investment declaration Form 12BB is Form 124.

The purpose of most forms has not changed, so this is mainly about knowing which number now means what, and which set applies to which year. This article maps the most commonly used forms, explains the transition and lists what employers, deductors and individuals should update.

Key takeaways

The Income-tax Rules, 2026 contain 333 rules and 190 forms, down from 511 rules and 399 forms, according to the Income Tax Department.
Form 16 is now Form 130, Form 16A is Form 131, and Form 26AS is Form 168.
Forms 15G and 15H are combined into a single Form 121.
The tax audit report in Forms 3CA, 3CB and 3CD is replaced by Form 26 for new-Act years.
Returns, certificates and audits for FY 2025-26 still use the old form numbers.

Why the forms were renumbered

The old Income-tax Rules, 1962 had grown over decades, with forms numbered in the order they were added: Form 10-IE, Form 3CEB, Form 26QB and so on. Some forms overlapped, and a few had become obsolete. The rewrite grouped forms by subject, merged similar ones and removed those no longer needed. The result is a shorter, more logical set, but one that requires everyone to relearn familiar numbers.

The new income tax forms 2026: old to new map

Purpose	Old form (1962 Rules)	New form (2026 Rules)
TDS certificate for salary	Form 16	Form 130
TDS certificate for other payments	Form 16A	Form 131
TCS certificate	Form 27D	Form 133
Quarterly TDS statement, salary	Form 24Q	Form 138
Quarterly TDS statement, other resident payments	Form 26Q	Form 140
TDS on property purchase and certain rent	Forms 26QB, 26QC	Form 141
Quarterly TDS statement, non-residents	Form 27Q	Form 144
Annual tax statement	Form 26AS	Form 168
Declaration for no TDS (individuals, senior citizens)	Forms 15G, 15H	Form 121
Employee claims for HRA, LTA, deductions	Form 12BB	Form 124
Application for lower or nil TDS	Form 13	Form 128
Foreign remittance information and certificate	Forms 15CA, 15CB	Forms 145, 146
Relief for salary arrears	Form 10E	Form 39
Foreign tax credit statement	Form 67	Form 44
Tax audit report	Forms 3CA, 3CB, 3CD	Form 26

For any form not listed here, use the mapping utility on the Income Tax Department’s website rather than guessing. Some forms were merged, so a single new number may replace more than one old form.

Which numbers apply to which year?

The new forms follow the new law, which applies from tax year 2026-27. The old forms continue for earlier years.

Salary for FY 2025-26: employers issued Form 16 in mid-2026 under the old rules. That is correct and does not need to be reissued.
Returns for FY 2025-26 (AY 2026-27): filed on the old ITR forms, with the tax audit report in Forms 3CA/3CB and 3CD. See our tax audit guide for FY 2025-26.
Deductions made from 1 April 2026: TDS certificates and quarterly statements relating to tax year 2026-27 use the new numbers, such as Form 130 and Form 138 for salary.
Corrections to old quarters: correction statements for periods before 1 April 2026 continue in the old format.

Example: a salaried employee in 2026-27

Priya works for a Noida-based company. In April 2026 she submits her proof of rent and investments using Form 124 instead of Form 12BB. Her employer deducts TDS on salary and reports it each quarter in Form 138. After March 2027, she receives Form 130 as her salary TDS certificate and checks her tax credits in Form 168 before filing her return for tax year 2026-27. In June 2026, she also received a Form 16 for FY 2025-26, which she used for her return filed in 2026.

What to update now

Employers and payroll teams

Replace Form 12BB templates with Form 124 in employee portals.
Update payroll software to generate Form 130 and file Form 138.
Revise employee communication and FAQs so staff know Form 16 is now Form 130.

Businesses that deduct or collect tax

Map each TDS return to its new form: Form 140 for resident non-salary payments and Form 144 for non-residents.
Issue Form 131 and Form 133 certificates for tax year 2026-27.
Update vendor onboarding checklists to request Form 121 where individuals claim no deduction.

Individuals

Submit Form 121 to banks instead of Form 15G or 15H where eligible.
Use Form 168 to check tax credits before filing returns for tax year 2026-27.
For foreign tax credit or salary arrears relief, note the new Forms 44 and 39.

Practical tips for the transition

Keep old and new forms in separate folders, labelled by year and law.
When a bank, employer or client asks for Form 16 or 15G, confirm which year they need; the answer decides the form.
Update standard contracts and engagement letters that quote form numbers.
Check that your accounting or ERP system prints the correct form number on certificates generated for each period; many systems allow year-specific templates.
Brief your finance and HR teams with a one-page mapping sheet. Most questions in the first year come from staff who search for an old number and cannot find it on the portal.
Read our explainers on the tax year concept and the Income-tax Act 2025 key changes for the wider context.

Frequently asked questions

What is the new number for Form 16?

Under the Income-tax Rules, 2026, the salary TDS certificate is Form 130. Form 16 continues only for FY 2025-26 and earlier years.

Is Form 26AS still available?

The annual tax statement continues as Form 168 for tax year 2026-27 onwards. Statements for earlier years remain available under the old name.

What replaces Forms 15G and 15H?

Both are replaced by a single Form 121 for declarations that tax need not be deducted on specified income.

Do I need to redo forms already filed for FY 2025-26?

No. Forms, certificates and returns for FY 2025-26 were correctly filed under the old rules and remain valid.

If you would like help updating your payroll, TDS processes or personal tax filings for the new income tax forms, our team is happy to assist.

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This article is general information based on the law as of September 2026, and is not legal or tax advice. Please check the facts of your own case with a professional before acting.

October 5, 2026