While salaried employees across India traditionally wait for their Form 16 every June, a major change is coming to their tax vocabulary. Under the proposed Income Tax Rules 2026, several old tax forms will officially retire on April 1, 2026, making way for a new numbering system.
Is Form 16 Being Discontinued?
The answer is no. The form is not being scrapped, but it is undergoing a significant renumbering. The document currently known as Form 16 will transition to Form 130. Its core function—serving as a TDS certificate—remains the same, but it will carry a new identity under the updated legal framework.
Major Changes in Form Names
It isn’t just Form 16 getting a makeover. To streamline the process, the government is renaming several key documents:
| Current Name | New Name (Effective April 1) |
| Form 16 | Form 130 |
| Form 26AS | Form 168 |
| Form 15CA | Form 145 |
Big Wins for Taxpayers: HRA and Education
The Draft Rules 2026 offer more than just new numbers; they provide genuine financial relief:
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Expanded HRA Benefits: In a major move, cities like Pune, Bengaluru, Ahmedabad, and Hyderabad are proposed to join the 50% HRA exemption bracket. Previously, this high-level relief was limited to Delhi, Mumbai, Kolkata, and Chennai.
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Education Allowance Hike: The monthly education allowance, which has long been stagnant at ₹100, is proposed to increase to ₹3,000 per month.
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Simpler Filing: To help the common man understand tax filing, the government plans to slash the total number of rules from 511 down to 333.
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Transition Period: To prevent confusion, officials may allow both old and new form numbers to be used simultaneously for a short duration.
