Form 26AS replaced with Form 168: What changes for taxpayers under the new Income Tax Act, 2025?

Form 26AS has long been the primary document used by taxpayers to verify TDS deductions, tax payments and refunds before filing their income tax returns. However under the new income tax rules, it is set to be replaced by a new consolidated tax statement called Form 168.

The new Form 168 is expected to provide a more detailed and comprehensive view of taxpayer's financial profile by including a wider range of tax-related information and specified financial transactions. The move is aimed at improving transparency, simplifying compliance and giving both taxpayers and the income tax department a broader view of income. taxes paid and high-value transactions.

What is Form 26AS (now Form 168)

Form 26AS is an annual tax credit statement in India that details all taxes deducted, collected, or paid in advance against a taxpayer’s PAN. Think of it as a tax passbook which verifies that the taxes deducted by your employer or bank have safely reached the government.

The new form applies to tax year 2026-27 (FY 2026-27) and onwards under the new Income Tax Act, 2025.

What kind of financial transactions will be reflected in the new form?

Form 168, notified under Rule 245 of the income-tax rules, 2026, is a comprehensive annual tax information statement reflecting all tax-related and specified financial transactions linked to a taxpayer’s PAN. It enables taxpayers and the Income Tax Department to verify taxes paid, income sources, and compliance history, according to I-T department's website.

Form 168 consolidates information for transparency, data accuracy, and ease of compliance. This includes:

• Tax Deducted at Source (TDS)
• Tax Collected at Source (TCS)
• Payment of advance, self-assessment, and regular taxes
• Specified Financial Transactions (SFTs)
• Demand and refund details
• Status of pending and completed proceedings
• Any other information as prescribed under Income Tax Rule 245.

Another key update is that the header will now use the term “Tax Year” instead of “Financial Year” to align with modernised forms under the Income Tax 2025 Act, the official website mentioned.

Taxpayers must also noted that Form 168 will be an auto-generated statement prepared by the I-T department and uploaded directly to the taxpayer’s registered e-filing account. It may be issued by the Principal Director General of Income-tax (Systems), the Director General of Income-tax (Systems), or any other authorised official designated by them.

Hence, individuals will not be required to file or submit Form 168 manually, similar to the current system followed for Form 26AS and AIS.

Structure of Form 168

The form is broken down into two key components.

— Part A: This section includes particulars of the person such as:

• Name (full, no abbreviations)
• Date of birth
• Full address, along with flat/door/block number, premises, road/street/lane, area/Locality, town/city/district, state and PIN code of the area
• Permanent Account Number (PAN)
• Email ID
• Contact number (multiple numbers allowed)

— Part B: This part covers the nature of Information such as:

• Tax deducted or collected at source (TDS/TCS)
• Specified financial transactions (SFT)
• Payment of taxes (advance, self-assessment, regular)
• Demand and refund
• Pending proceedings
• Completed proceedings
• Any other information under sub-rule (2) of Rule 245, 2026

Why should a taxpayer check Form 26AS (now Form 168) before filing ITR?

A taxpayer should ensure that the income tax return or ITR is aligned with Form 26AS. In case of any discrepancy, the income tax department may issue tax notice to seek explanation for such discrepancies in the figures of income or TDS appearing in Form 26AS and income tax return.

This is especially crucial because there are certain transactions which are required to be reported by the banks or financial institutions to the income tax department. For example, deposit of cash in bank account, buying a house property, among others.

These financial transactions are reported in ‘Statement of Financial Transaction’ (‘SFT’) only when they cross the threshold limit. These transactions also appear in Form 26AS under AIR (annual information return) column.