Starting April 1, 2026, taxpayers in India will face a significantly altered tax landscape as the new Income Tax Act and its associated rules come into effect. The Central Board of Direct Taxes (CBDT) has introduced several mandates aimed at increasing transparency, particularly regarding overseas earnings and digital assets.
1. Foreign Tax Credit (FTC): CA Certification Now Mandatory
Claiming credit for taxes paid in foreign countries is becoming more rigorous. Under the new Rule 76, simple documentary evidence will no longer suffice for high-value claims.
- The Threshold: If your total foreign tax paid exceeds ₹1 lakh in a year, you must obtain a Chartered Accountant’s (CA) certificate.
- Corporate Mandate: For all companies, CA verification of the FTC claim (via the new Form No. 44) is mandatory regardless of the amount.
2. Crypto Income Under the Scanner
The “cloak of invisibility” for cryptocurrency transactions is officially over. Amended Rules 114-F, 114-G, and 114-H now mandate that crypto exchanges share all transaction data with the tax department.
- Automatic Flags: This data will flow directly into your Annual Information Statement (AIS) and Taxpayer Information Summary (TIS).
- Result: Any undisclosed crypto holdings or gains will be automatically flagged by the tax department’s systems, making non-disclosure a high-risk move.
3. The Great Form Re-Naming
One of the most immediate changes for everyday taxpayers and employees is the overhaul of form numbers. You will need to request new form numbers from your employers and banks starting next month.
| Old Form Number | New Form Number (Effective April 2026) | Description |
| Form 16 | Form 130 | Annual Salary TDS Certificate |
| Form 16A | Form 131 | TDS Certificate for Non-Salary Income |
| Form 26AS | Form 168 | Annual Consolidated Tax Statement |
| Form 15G / 15H | Form 121 | Declaration for No TDS on Interest |
| Form 12BA | Form 123 | Statement of Perquisites |
Key Takeaways for Taxpayers
- Talk to your Employer: Ensure they are prepared to issue Form 130 instead of the traditional Form 16.
- Verify your AIS: Before filing, check your AIS/TIS for crypto transactions to ensure your return matches the data reported by exchanges.
- Plan for FTC: If you have significant overseas income (RSUs, foreign dividends, or offshore consulting), engage a CA early to prepare the necessary certification for your FTC claims.
