India enacts Income Tax Act 2025 and merges Forms 15G and 15H
Tax compliance teams must use Form 121 and Form 168 from Apr 1, 2026
Change
India enacted the Income Tax Act, 2025, effective April 1, 2026, replacing the Income Tax Act, 1961, consolidating declaratory Forms 15G and 15H into a unified Form 121 and renaming Form 26AS as Form 168.
Why it matters
Declarations to prevent Tax Deducted at Source (TDS) must be made on the single unified Form 121 by all declarants under Section 393(6), removing age-based form distinctions. TDS and Tax Collected at Source (TCS) reporting will migrate to the new FAST-DS (fast digital TDS reporting system) and Form 26AS will appear as Form 168 in taxpayer ledgers.
Implications
- — Payroll and employer tax-filing teams and tax return preparers must collect TDS declarations on Form 121 and file employee TDS returns through FAST-DS from April 1, 2026 — failing to convert filings will produce non-compliant returns under the Income Tax Act, 2025.
- — Tax-software vendors and payroll system providers must update e‑filing outputs and interfaces to support Form 121, Form 168 and FAST-DS before April 1, 2026 — without updates clients will be unable to file in the required formats and face compliance breaches.
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Source
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