CA K Sanjay BhargavChartered Accountant
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Income-tax Rules 2026 vs 1962: what changed

CA K Sanjay Bhargav, Chartered Accountant, Bengaluru

Membership No. 250054 · DISA (ICAI)

Published

Short answer: the Income-tax Rules, 2026 (Notification No. 22/2026 dated 20 March 2026) replaced the 1962 Rules from 1 April 2026333 rules and 190 forms, against 511 rules and 399 forms before. Nearly every form number you use routinely has changed, and the old numbers remain correct for old years.

What actually happened

The Act was rewritten; the Rules had to follow. The Income-tax Rules, 1962 had accumulated six decades of amendment, with near-duplicate forms for closely related situations and a long tail of spent provisions.

1962 Rules2026 Rules
Rules511333
Forms399190
Appendices3
In force from19621 April 2026

Most of the reduction is consolidation rather than removal of obligations. Three property-related challan-cum-statements become one; two declaration forms become one; the TDS quarterly returns keep their function under new numbers.

The form renumbering

This is the part that touches daily work.

PurposeOld formNew form
Salary TDS return (quarterly)24Q138
Non-salary resident TDS return26Q140
Non-resident TDS return27Q143
TCS return27EQ144
Property / rent / contractor challan-statements26QB, 26QC, 26QD141 (consolidated)
No-deduction declarations15G, 15H121 (unified)
Foreign remittance — declaration and certificate15CA, 15CB145 / 146 (UDIN-enabled)
Relief for salary arrears10E39
Tax audit report3CD26 (from TY 2026-27)
PAN application49A, 49AA93–96
TAN application49B134 / 135
No-PAN declarations60, 6197 / 98

Two of these deserve a note:

15CB becomes Form 146, and it is UDIN-enabled. The accountant's certificate for a foreign remittance now carries UDIN within the form. For a practice, that changes the issuing workflow, not just the number.

Form 10E becomes Form 39. The relief itself moved from Section 89 to Section 157 of the 2025 Act. Be careful of the neighbour: Section 156 of the 2025 Act is the rebate (the old Section 87A), not arrears relief. Two different reliefs, adjacent numbers, easy to transpose in a working paper.

⚠️ The old forms are still correct — for old years

The single most common error in this transition is applying the new form set to a year that is still governed by the old Act.

What you are filingYearForms
Return for FY 2025-26AY 2026-27, 1961 ActOld ITR forms
Tax audit for FY 2025-26AY 2026-273CA / 3CB / 3CD, due 30 Sep 2026
Return for FY 2026-27Tax year 2026-27, 2025 ActNew form set
Tax audit for FY 2026-27Tax year 2026-27Form 26

So the audit season running now is still on the old forms. Form 26 arrives with tax year 2026-27, a year later than most people assume.

Audit thresholds are unchanged by the new Rules — ₹1 crore for business, rising to ₹10 crore where cash receipts and payments are within 5%, and ₹50 lakh for professionals. The Rules renumbered the report; they did not move the trigger. See presumptive taxation under Section 58 for how the audit threshold interacts with the presumptive scheme.

What still works from before

  • PAN and TAN remain valid. No reissue is required.
  • Existing registrations and approvals granted under the 1962 Rules continue.
  • Lower-deduction certificates issued under Section 197 before the transition remain valid for FY 2026-27 receivables.
  • Old circulars continue to apply to the extent consistent with the new Act, and govern pre-2026 years outright.

The savings provision at Section 536 of the 2025 Act carries all of this — see pending assessments and appeals after the repeal.

A practical checklist

  1. Update return templates to Forms 138, 140, 143 and 144 for TY 2026-27 quarters.
  2. Leave the AY 2026-27 audit on 3CA/3CB/3CD — due 30 September 2026.
  3. Switch 15CA/15CB workflows to Forms 145/146 and build UDIN into the issuing step.
  4. Change 10E to Form 39 in your arrears-relief templates, and check you are citing Section 157, not 156.
  5. Consolidate 26QB/26QC/26QD handling into Form 141.
  6. Keep old-form templates — they remain correct for old years and will be needed for some time.

For the TDS side in detail, see TDS under Section 393. For the sections behind the forms, the old-to-new mapping is the quick reference.

This is a working reference, not the statute. For anything you are filing or relying on, confirm the current form and rule against the Act, the Rules or the department's official comparison utility.

Frequently asked questions

When did the Income-tax Rules, 2026 come into force?

They were notified by Notification No. 22/2026 dated 20 March 2026 and took effect from 1 April 2026, alongside the Income-tax Act, 2025. They replace the Income-tax Rules, 1962.

How much smaller are the new Rules?

Substantially. The 2026 Rules run to 333 rules with 3 appendices and 190 forms. The 1962 Rules had grown to 511 rules and 399 forms over six decades. The reduction comes mostly from consolidating near-duplicate forms and removing provisions that had become spent.

Do I use the new forms for my FY 2025-26 return?

No. FY 2025-26 income is assessed for AY 2026-27 under the 1961 Act, and it uses the old ITR forms. Tax audit for that year is still on Forms 3CA, 3CB and 3CD, due 30 September 2026. The new form set applies from tax year 2026-27 onwards.

What replaced Form 3CD?

A consolidated Form 26, from tax year 2026-27. For AY 2026-27 the existing Forms 3CA, 3CB and 3CD continue to apply, so the current audit season runs on the old forms. Audit thresholds themselves are unchanged.

What happened to Form 10E for arrears relief?

It is now Form 39. The underlying relief moved too — Section 89 of the 1961 Act is Section 157 of the 2025 Act. Note the adjacent trap: Section 156 of the 2025 Act is the rebate, formerly Section 87A, so the two reliefs now sit next to each other with easily transposed numbers.

Are 15CA and 15CB still required for foreign remittances?

Yes, as Forms 145 and 146 respectively. The substantive requirement is unchanged, but the new forms are UDIN-enabled, so the accountant's certificate carries verifiable authorship built into the form itself.

Need the right form for the right year?

Send us what you are filing and for which year. The correct form, the correct Act and the deadline are confirmed before submission — including where the old forms still apply.

Related service: Income Tax & ITR Filing