New I-T Act: Taxpayers must submit more information while filing ITR

The income tax department will be asking whole lot of information from the taxpayers in the new I-T rules, which has been rolled out on Wednesday. For example, new rules require tenants to disclose relations with landlord while filing income tax return (ITR).

Talking to Bizz Buzz, CA Ashish Niraj, partner, A S N & Company, Chartered Accountants, says, “If we see the changes made in Income Tax Forms, in the recent years, we find that department is more focused on getting data on which basis exemption or deductions are being claimed so that department has all relevant data at the time of processing or scrutiny.”

The department is asking many detailed information in some forms that is bound to make the documentation challenging. For Instance, old Form 12BB, which was required to be submitted to employer by employee for claiming deductions and exemptions, is now Form 124. Now, Form 124 is asking new details for HRA deduction like relationship with landlord, copy of Rent Agreement etc. Many people, who were giving rent to their relatives etc will now come on department’s radar and they will cross verify whether the landlord is showing rent in his ITR as income or not.”

Niraj further explained, “Form 49A under Income Tax Act 1961 was required to apply for PAN, which is now in Form 93 to Form 96 as per Individual or Entity and residential status. Residential status is being asked in forms: If a person is non-resident or resident. If not resident then passport number is made mandatory. The new form also has column for TIN in the country of residence, if any. Aadhaar is made mandatory in case of representative assessee. Registration number is mandatory now for the company, firm, LLP etc.”

Form 13 of Income Tax Act 1961 which was used to be filed to request ‘Nil’ or lower deduction certificate is now called form No. 128. The new form has different categories of applicants such aş Registered NPO, Specified Entity 262(9)(c), persons carrying business and profession and last other than above. Welcome step is that now if checked the appropriate column, the certificate will reach specified deductor directly and taxpayer need not to take it and deposit to deductor. Form 67 which was required for Foreign Tax Credit in Income Tax Act 1961 is now Form No 44. While Form 67 was self-declaration, Form 44 needs to be certified by a Chartered Accountant.

For business taxpayers, under the Income Tax Act 1961, Form 3CA, 3CB, 3CD was applicable for submitting Tax Audit Reports. Now Form 26 has replaced the Form 3CA, 3CB, 3CD. Now each clause in Part B requires a mandatory ‘Yes/No’ response to ensure completeness.

Also Under Rule 46, where the books of account or other documents are maintained electronically, they shall mandatorily remain accessible in India at all times, and a daily backup shall be maintained in India-located servers. Form No. 26 requires the IP address and country of location of server on which such accounting information is maintained to be provided, as well as the address of the India-located backup server to be furnished by the auditor.

Clause 43 will include 15CA remittances. Clause-wise schedules will have to be filled. To enhance accountability of auditor, Part B has been separated from Part C/D. The audit observations/qualifications by auditors will have to be mandatorily categorised clause-wise into one of the following three categories:1) Test-check basis, applying the principle of materiality; 2) Based on management representation; 3) Unable to verify. The auditor will now be required to provide the impact (if any) on the profit/loss/book profit of any observations, qualifications, adverse remarks, disclaimers, or emphasis of matters, in the statutory audit.

The auditor will have to provide the total number of transactions reported and those not reported in the TDS/TCS return, as it stands after the latest correction statement. Further, the total amount in relation to transactions not reported in the TDS/TCS return, will also have to be furnished. Similarly, many detailed information is required in new Form 26 and as all these data will be provided by clients only to the auditor for further submission, they will feel pressure as they are normally not used to such intensive reporting.”

“Now, Form 141 is introduced to replace Form 26QB, 26QC, 26QD & 26QE. Details of all landlords and tenants involved must be reported, along with their respective share percentages in the rent or rental proceeds. Details of all buyers and sellers involved must be reported, along with their respective share percentages in the property.’’

“Form No 168 has replaced Form 26AS. It will also have column showing pending proceedings and completed proceedings separately. Many taxpayers used to hide pending proceeding while applying for loans etc, now it will be visible in Form 168.”

One of the biggest changes is the manner of claiming House Rent Allowance (HRA) when the taxpayer pays rent to his/her spouse or parents, the old Form 12BB (used by employees to claim deductions) has been replaced by Form 124. This new form doesn't just ask how much rent you pay. It now requires your relationship with the landlord and a copy of the rent agreement.

Applying for a Permanent Account Number (PAN) is also changing. The old Form 49A will be replaced by Forms 93 to 96, depending on who you are.

Another tax expert, CA Abhishek Aneja says, “A new era has begun in India’s taxation landscape. With the implementation of the New Income Tax Act from April 1, 2026, the government has taken a decisive step towards simplifying the income tax structure and making it more transparent, taxpayer-friendly, and efficient.”

The intent is clear — reduce complexity, enhance compliance, and build trust. What stands out even more is the progressive thought shared by the Finance Minister Nirmala Sitharaman in her recent address, where she emphasized that tax officers must not view taxpayers as adversaries, but as partners in nation building, she said. This shift in mindset is as important as the law itself.