KEY 2026 INCOME TAX CHANGES | S K and Associates

 

KEY 2026 INCOME TAX CHANGES

 

  • New Tax Rules 2026: The Income-tax Rules, 2026, create a single "Tax Year" (April–March), eliminating the old Assessment Year terminology. 

 

  •  Form 130: Form 16 will be replaced by Form 130, requiring more detailed and systemic reporting from employers.

 

  • HRA Scrutiny: Employees must submit Form 124 for HRA claims; landlords' PAN is mandatory for rent over ₹1 lakh.

 

  • Digital Currency: The RBI’s Digital Rupee (e₹) is now an official, prescribed mode of electronic payment for tax deductions.

 

  • SFT Thresholds Reduced: Reporting for insurance premiums (SFT) has been lowered to ₹5 lakh (with PAN) and ₹2.5 lakh (without PAN).

 

  • Exemptions: Free education perquisites in employer-owned schools increased to ₹3,000 per month per child. 

 

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