As of April 1, 2026, India’s direct tax framework has undergone its most significant structural transformation in over six decades. The implementation of the Income Tax Act, 2025 has officially replaced the aging 1961 Act, bringing with it a more streamlined, digitized, and modernized taxation regime. Along with this Act, the Central Board of Direct Taxes (CBDT) has introduced the Income Tax Rules, 2026. This isn’t just a simple renumbering exercise; the new rules introduce streamlined, category-specific compliance forms designed to cut down on paperwork, eliminate duplication, and enhance transparency for taxpayers across the country.

At Delhi Tax Solutions, we understand that keeping up with these legislative shifts can feel overwhelming for both individuals and businesses. Whether you are an individual taxpayer navigating the new tax regime, a growing MSME, or a corporate entity involved in cross-border investments in the National Capital Region, our goal is to help you stay ahead of these changes. In this comprehensive, comparative guide, we break down the most important form changes you need to know for the Financial Year 2025–26 (Assessment Year 2026–27) onwards.

1. The Shift from 1961 to 2025 – What Has Changed?

For decades, the Income Tax Act of 1961 served the nation well, but the rapid digitization of the Indian economy and the expansion of the tax base necessitated an overhaul. The Income Tax Act, 2025 is built on the premise of simplicity and trust. The compliance burden on taxpayers has been reduced through the consolidation of various forms and returns.

For taxpayers in Delhi, understanding these changes is critical to avoiding processing delays and penalties. With the new rules in effect from April 1, 2026, failing to use the correct form can result in your return being treated as defective or invalid. Let us delve into the specific changes across various categories of taxation.

2. Deep Dive into PAN and TAN Form Revisions

To improve clarity and streamline data processing, the multi-purpose application forms have been split into category-specific formats. While existing PAN and TAN numbers remain valid, fresh applications on or after April 1, 2026, must be filed using the new system.

PAN Applications

The permanent account number application process has been divided into distinct forms to address different classes of applicants:

• Form No. 94: Designed specifically for Indian individuals, HUFs, and domestic entities. This form replaces the old Form 49A. It includes simplified sections for Aadhar integration and digital verification.
• Form No. 95: Tailored for individuals who are not citizens of India but are liable to pay tax on Indian income. This replaces the old Form 49AA and captures relevant residency and passport details.
• Form No. 96: Specifically for corporate or non-resident entities incorporated outside India. This form, which replaces the older Form 49AA, is vital for foreign portfolio investors and entities planning cross-border investments or setting up a subsidiary in India.

TAN Applications

For Tax Deduction and Collection Account Number (TAN) applications, the new rules have also introduced a clear bifurcation:

• Form No. 134: Applicable exclusively to Government entities, ensuring that state and central departments have a dedicated reporting path.
• Form No. 135: Applicable for all non-government entities, including individuals, LLPs, companies, and HUFs.

3. Streamlining Declarations and Exemptions – Form No. 121

Previously, taxpayers had to navigate complex and separate forms to claim nil or lower Tax Deducted at Source (TDS) on interest and dividend income. The compliance process was often tedious, requiring multiple submissions to different banks and financial institutions.

The introduction of Form No. 121 changes the landscape:

• Merger of Form 15G & 15H: Form 15G (for resident individuals below 60 years) and Form 15H (for senior citizens) have been consolidated into a unified Form No. 121. This simplifies the declaration process for individuals earning interest on fixed deposits or dividends from mutual funds.
• Unified UIN System: The income tax department now allots a single Unique Identification Number (UIN) per PAN across a given tax year. This ensures that declarations furnished to various banks and financial institutions are tracked centrally, eliminating processing duplication and preventing double taxation issues.

4. Comprehensive Audit and Reporting Changes (Form 26)

For businesses and corporate entities in Delhi, staying compliant with tax audits is a major operational requirement. Under the new Income Tax Act, 2025, the reporting forms have been unified to reduce administrative overhead.

Form No. 26 now consolidates the old Form 3CA, 3CB, and 3CD into a single document. Instead of juggling multiple forms to present the statement of particulars, a single unified document covers these reporting requirements. This integration makes it easier for chartered accountants to audit financial statements and ensures that the data reported is consistent and less prone to clerical errors.

For companies looking into GIFT City tax holidays or expanding into new markets, this simplified audit reporting reduces compliance costs and speeds up the certification process.

5. Comprehensive TDS and TCS Return Forms

While the core mechanics of TDS and TCS remain largely unchanged, the forms used for quarterly reporting have been renumbered and optimized under the 2025 Act. Here is a comparative breakdown of the old and new forms for your reference:

6. Other Notable Form Revisions

The new regulations have modernized several other specific forms to keep pace with the changing economic environment:

• Relief on Salary Arrears (Form No. 39): This form replaces the old Form 10E. It features improved computation tables and auto-populated relief calculations, making it much easier for salaried individuals to claim relief under Section 89(1).
• Charitable Trusts Registration (Form No. 104): Replaces the old Form 10A for fresh provisional registrations on or after April 1, 2026. This is essential for non-profit organizations and trusts looking to maintain their tax-exempt status.
• Foreign Tax Credit (Form No. 44): Replaces Form 67 for filing statements of income earned from outside India. This is particularly important for individuals with global income or who are exploring GIFT City investment opportunities.

Why Choose Delhi Tax Solutions?

Adapting to the new Income Tax Act, 2025 requires a solid understanding of the updated compliance framework. Incorrectly filing an outdated form number can result in rejections, penalties, or unnecessary processing delays, costing you valuable time and money.

At Delhi Tax Solutions, our team of experienced Chartered Accountants and tax advisors is fully equipped to assist you with this transition. We offer specialized services in:

• Navigating both the new and old tax regimes for optimal individual and corporate tax planning.
• Processing your TDS, TCS, and tax audit filings accurately under the new Form 26 and Form No. 132/138/140 structures.
• Handling company incorporations, GST registrations, and corporate filings.
• Providing tailored advice on GIFT City tax holidays and NRI investment regulations.

Let us handle your compliance while you focus on growing your business. Reach out to the team at Delhi Tax Solutions today to schedule a consultation and ensure your financial records are 100% compliant and optimized.

Need expert assistance with the new tax compliance? Contact Delhi Tax Solutions today!