The Income Tax Department has rolled out a new and simplified form for reporting Tax Collected at Source (TCS), aiming to make compliance easier for businesses and collectors. From April 1, 2026, Form 143 replaced the older Form 27EQ.

It posted on X, “Old form 27EQ has been replaced with new form 143. Form 143 - Quarterly statement of TCS filed by collector.”

In a significant compliance change aligned with the new tax regime, the Employees Provident Fund Organisation (EPFO) has directed all its field offices to transition from the existing Forms 15G and 15H to a new consolidated declaration ‘Form 121’, effective April 1, 2026.

This move follows the implementation of the Income Tax Act, 2025, which replaces the decades-old Income-tax Act, 1961 and introduces a more streamlined approach to tax declarations for individuals seeking exemption from Tax Deducted at Source (TDS).

What has changed?
As per the official EPFO order dated April 13, 2026, “the erstwhile Form 15G and Form 15H have been replaced by a single, consolidated written declaration in Form 121”.

Income-tax assessment is all about checking and reviewing the information you provided in your Income-Tax Return (ITR). There are different types of tax assessments under the law, such as Summary Assessment, Scrutiny Assessment, Best Judgment Assessment and Re-assessment. In the past, most assessments were done manually.

But now, as part of the e-governance initiative, the Central Board of Direct Taxes (CBDT) has been given the authority to create a scheme for electronic assessment of total income or loss under Section 143(3). This aims to enhance greater efficiency, transparency and accountability. Using this power, the CBDT introduced the e-Assessment Scheme, 2019, which was later renamed as Faceless Assessment Scheme, 2019.
According to Taxmann research, in Budget 2026, the government, in the Finance Bill, 2026 introduced several significant changes to the provisions governing income tax assessment and reassessment. Here's an overview of the key amendments:

The Income-Tax Department has introduced an upgraded version of its TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal, aiming to streamline tax compliance through a unified digital platform. The rollout coincides with the implementation of the new Income-Tax Act, 2025, which came into effect on April 1.

The move reflects a broader push towards digitisation, with authorities seeking to simplify procedures, reduce errors, and enhance transparency for both individuals and businesses.

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The revamped portal offers a single-window interface for all TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) services. Users accessing the older TRACES link are automatically redirected to the new system, while a separate portal has been introduced for non-resident taxpayers.

The new financial year FY26–27 has begun, bringing with it a fresh set of income tax deadlines that taxpayers should keep in mind.

Staying on top of these timelines and making timely investments can help you avoid penalties and unnecessary hassles. Missing key deadlines could lead to compliance issues and added costs.

It’s also important to note that income tax deadlines go beyond just ITR filing. Taxpayers need to keep track of other obligations such as TDS, TCS, advance tax payments and various reporting requirements.

Income Tax Calendar for FY27
Here’s a month-wise snapshot of important tax deadlines to help you stay organised:

April
April 14

Issue of TDS certificates for specified transactions (Sections 194-IA, 194-IB, 194M, 194S)
Reporting of client code modifications by stock exchanges

The Income Tax Department disposed of 2.22 lakh appeals during the last financial year, a nearly 29 per cent increase compared to the previous fiscal as part of its efforts to reduce disputes with taxpayers, according to official data.

Officials told PTI that CBDT Chairman Ravi Agrawal wrote a fiscal-end letter to the department's staffers praising their efforts for the past year and stressed that their actions in the current fiscal (2026-27) should be "guided" by data, "proportionate" actions and aligned with the larger objective of providing a "fair and efficient" tax system.

He told the officials that the department has "significantly" strengthened the use of data analytics and intelligence-driven approaches to identify risks and guide enforcement actions.

Last week, the Income Tax Department rolled out a new TRACES (TDS Reconciliation Analysis and Correction Enabling System) 2.0 portal. This upgraded TRACES 2.0 portal is a digital platform designed to streamline TDS compliance in line with the Income Tax Act, 2025 which came into force from April 1, 2026.

It replaces the previous TRACES system with a more user-friendly interface, improved functionality, and simplified reporting structure, making TDS-related processes more efficient, transparent, and integrated.
How to access the new TDS TRACES 2.0 portal and what it offers
The new website is accessible at traces.tdscpc.gov.in (with automatic redirection from the old URL) and the new portal features a completely revamped interface with improved user experience, simplified navigation, and streamlined workflows.

Section 157 (1) of the Income-tax Act, 2025 provides for neutralising the higher tax burden that may arise due to clubbing of additional salary and other specified receipts in the total income of the current year. The tax relief under this section can be availed by filing Form 39.

Ever wondered what happens to your tax liability when you receive pending salary from the past, such as salary arrears or gratuity for previous service, in a financial year where you are already required to pay tax on your current income?

In such cases, the arrears received are added to your current taxable income. While clubbing arrears with current salary or income can potentially hike your tax liability, the Income-tax rules provide a form that can be filed for tax exemption on arrears. Until FY 2025-26 (AY 2026-27), you could file Form 10E for this purpose.

The Income Tax Act, 2025, has come into force from 1 April 2026. One of the objectives of the new Act is to provide a streamlined, simplified tax code with reduced compliance and consolidated provisions. Several sections, scheduled, rules, and forms have been consolidated and reduced. The number of forms has been reduced from 399 to 190. As part of this exercise, a new Form 121 has been introduced. In this article, we will understand what Form 121 is and why it should be submitted to the bank for the Tax Year 2026-27.

What is Form 121?
As per the Income Tax Act, 1961, bank depositors had to submit Form 15G/Form 15H to the bank to avoid Tax Deducted at Source (TDS). Some depositors were confused about which of the two forms applied to them. Senior citizens (60 years and above) had to submit Form 15H, and other depositors had to submit Form 15G.

The direct tax collections for FY26 fell short of the revised estimates target of Rs 24.21 lakh crore, by over Rs 10,000 crore, mainly due to a lower-than-expected income tax mop-up, a senior government official told Moneycontrol, adding that indirect tax collections were achieved.

The shortfall in tax revenue has not affected the fiscal deficit, however, and the government has been able to hit its target of 4.4 percent (as a percentage of GDP) in FY26, the official noted.

The nation's income tax system has undergone significant changes with the introduction of new forms under the Income Tax Rules, 2026. In addition, the launch of an integrated payment module on the e-Filing portal has added immense value to tax filers. With the old Income Tax Act, 1961, officially repealed from 1 April 2026, taxpayers must now shift their focus to navigating a dual-framework transition while ensuring clarity on compliance.

One of the biggest improvements is the introduction of updated forms aligned with the new Income Tax Act, 2025. It hence becomes indispensable for taxpayers to carefully select forms, especially for the assessment year 2026-27.

This is because both legacy and new systems will coexist briefly during the transition.

India's apex authority has been told by the court to step in amid a flurry of orders across the country demanding tax on bonuses and performance-driven remunerations received by partners of large tax, audit, consultancy and other professional partnership firms, including some belonging to Big 4 members.

Those grappling with such orders argue that the Income tax (I-T) department stands on flimsy ground as their firms have already paid tax on such payments.

Nonetheless, tax offices in Delhi, Mumbai, Chennai, Indore, Bhubaneshwar and few other cities have pursued the issue.

A partner with S R Batloi & Co (SRB), the audit arm of EY, and a partner of a Big 4 firm have separately moved the Delhi High Court, challenging the actions of the tax officers.

The Income Tax Department has clarified that taxation depends on the date of payment, not when the salary is earned. Salary paid by March 31, 2026, will fall under the Income-tax Act, 1961, while payments from April 1, 2026, will be taxed under the new Income Tax Act, 2025, as TDS applies at the time of payment.

Tax rules 2026: As India transitions from the Income-tax Act, 1961, to the new Income Tax Act, 2025, from April 1, 2026, salaried employees are likely to see immediate changes in how their salary is taxed. One of the most important—and often misunderstood—aspects of this shift is how Tax Deducted at Source (TDS) will be applied during the transition period.

Payment date

According to the Income Tax Department, the key factor is not when the salary is earned, but when it is paid.

Salary for March 2026, if paid on or before March 31, 2026, will be governed by the Income-tax Act, 1961
Salary for April 2026, paid on or after April 1, 2026, will fall under the Income Tax Act, 2025

More than 1.3 lakh taxpayers are currently waiting for their income tax refunds, not because of scrutiny or errors but due to something as basic as an inoperative PAN, Parliament was informed recently by the government.

The Finance Ministry informed that refunds worth over Rs 340 crore have been withheld in such cases, highlighting how a simple compliance lapse can delay taxpayers’ money.

The details were shared in a written reply in the Lok Sabha, making it clear that PAN-Aadhaar linking is now critical for smooth tax processing.

What the government told Parliament
The issue came up through a set of questions raised by MPs Shri Karti P Chidambaram, Shri Dr Amar Singh, and Shri Benny Behanan in the Lok Sabha.

Responding to this, Minister of State for Finance Shri Pankaj Chaudhary provided detailed data on PAN inoperability, refunds, and grievances.

The Central Board of Direct Taxes (CBDT) on Tuesday issued updated guidelines for referencing computer-generated Document Identification Numbers (DIN) in income-tax communications. It states that any correspondence such as notices, letters, orders, draft orders, or summons issued by income-tax authorities to taxpayers must reference a DIN. The circular also lists practical exceptions where DIN referencing may not be possible, including technical difficulties, field enquiries outside the office, or system unavailability. In such cases, the communication must explicitly state the reason and require post-facto approval within 15 days by a competent authority.

The concept of Document Identification Number in income-tax proceedings was introduced by the CBDT in 2019 to ensure transparency, accountability, and an audit trail in departmental communications. It mandated that every notice, order, summons, or letter issued by the Income-tax Department must carry a computer-generated DIN, failing which such communication would be treated as invalid or deemed never to have been issued, except in limited specified circumstances.
Various high courts interpreted the circular strictly and quashed several reassessment notices and orders purely on technical grounds. Taxpayers relied heavily on this as a jurisdictional defect, while the tax department argued that DIN was only a procedural requirement and that minor lapses such as non-mention or incorrect mention should not invalidate otherwise lawful proceedings.

Today marks the beginning of the new financial year FY2026-27, which also means that the new Income-tax Act, 2025 has kicked in and replaced the decades-old Act rolled out in 1962. Meanwhile, the government has also notified all income tax return (ITR) forms for Assessment Year (AY) 2026-27, setting the stage for the upcoming filing season.

The Central Board of Direct Taxes (CBDT) has released ITR-1 to ITR-7, along with ITR-U and ITR-V, under the Income-tax Rules, 1962. These forms will be used to file returns for income earned in FY 2025-26.

Importantly, even though the new Income-tax Act, 2025 and revised rules will come into force from April 1, 2026, taxpayers will continue to file returns for this assessment year under the existing legal framework.

The Central Board of Direct Taxes said income from the transfer of investments made before April 1, 2017 will remain outside the ambit of general anti-avoidance rules (GAAR), providing clarity and relief to investors holding legacy assets.

In a notification issued late Tuesday night, the CBDT amended a Rule 128 of the Income-tax Rules, 2026, grandfathering gains from investments made before April 2017.

The amended rules state that GAAR provisions will apply to any arrangement that yields tax benefits on or after that date, regardless of when the arrangement was originally entered into.

The move is significant as it draws a clearer line between protected investments and arrangements open to tax scrutiny.

Several important income tax changes are scheduled to go into effect on April 1, 2026, providing taxpayers with a combination of relief and increased compliance requirements. However, it's important to note that these new tax rules, 2026 are applicable from Tax Year 2026-27 onwards. As for AY 2026-27 (FY 2025-26), income tax return (ITR) needs to be filed on or before July 31, 2026 by following the old tax rules, 1962 and old tax act, 1961.

For Tax Year 2026-27 i.e. from April 1, 2026 new rules like revised TDS and TCS provisions to changes in return filing timelines, buyback taxation, and new reporting formats, the updates will have a direct impact on tax planning and compliance for Tax Year 2026-27. Notably, concepts like the introduction of a "Tax Year", revamped income tax forms, and updated deduction limits signal a shift towards a more streamlined tax regime.

On March 26, 2026, the Income Tax Department clarified that one of the changes made through the government's amendments to the Finance Bill, 2026 introduces a surcharge on the additional income-tax that promoters have to pay on capital gains arising from buyback, in accordance with Section 68 of the Companies Act, 2013. The surcharge is set at 12%.

The Income Tax Department said on X (formerly Twitter): "It is clarified that Section 69 of the Income-tax Act, 2025 provides for tax rates only in respect of additional income tax on promoters in respect of capital gains on such buyback. Therefore, the rate of 12% will apply only on additional income-tax to be paid by the promoters on aforesaid capital gains mentioned in Section 69(2) (b)."

What does this mean for individuals who are not promoters of a listed company?
This means that for individuals who are non-promoters, surcharge as per normal provisions will apply, if applicable on such capital gains.

The income tax department on Monday said "banking company" governed by the provisions of the Banking Regulation Act, 1949, will deduct TDS on interest income beyond the prescribed threshold.

Under the Income Tax law, the tax is to be deducted at source if the interest income from bank/post office deposits exceeds Rs 50,000 for ordinary citizens, or Rs 1 lakh for senior citizens, in a financial year.

In a post on X, the income tax department said under Section 402 of the new Income Tax Act, 2025, a "banking company" refers to a company to which the provisions of the Banking Regulation Act, 1949, apply.