A Complete Checklist of Employee Forms under Draft Income Tax Rules, 2026

The transition from the old Income Tax Act, 1961 to the new Income Tax Act, 2025 has completely reshaped the compliance landscape for salary‑paying employers. Every familiar employee-related form has been renumbered, restructured, or redesigned, and missing these changes can directly translate into penalties, rejected claims, or defective returns.

To make this transition practical for HR, payroll, and tax teams, we have created a concise, practitioner-friendly “Employee Forms Checklist” that maps each legacy form to its new avatar under the Draft Income Tax Rules, 2026, along with key compliance alerts. You can download the complete checklist PDF using the link given below.

Why This Employee Forms Checklist Matters

This checklist is designed to solve three everyday pain points for employers and payroll teams:

• Renumbered and remapped forms
  The document provides a side‑by‑side mapping of old form numbers (under the 1962 Rules / 1961 Act) to the new form numbers notified under the Draft Income Tax Rules, 2026, with their corresponding sections and rules under the Income Tax Act, 2025.
• Snapshot of key changes
  For each major employee-related form, the checklist captures the material legal and procedural changes – thresholds, new data fields, annexures, and risk points flagged by the Revenue.
• Highlight of “risk hotspots”
  Wherever a change can trigger penalty exposure, claim rejection, or defective filing (for example, HRA misreporting or mismatch between TDS statements and certificates), the checklist clearly calls it out as a compliance risk.

Some Critical Form Changes Covered

Here are a few examples from the checklist that most employers will encounter in day‑to‑day payroll:

• Employee claims statement (old Form 12BB → new Form 124)
  The familiar investment and deduction declaration form has been renumbered, with significantly enhanced disclosure requirements for HRA. Relationship with landlord, full address, PAN and Aadhaar of landlord, and a formal registered rent agreement (Annexure A‑1) are now mandatory, and misreporting can attract a 200% penalty under the new regime.
• TDS certificate for salary (old Form 16 → new Form 130)
  The traditional Part A / Part B structure is replaced by a single unified, digital‑first format. For employees with salary up to Rs. 1.5 lakh, Form 130 itself contains a detailed perquisite statement (Annexure I, Part C), so a separate perquisite form is not required.
• Perquisite statement (old Form 12BA → new Form 123)
  This separate perquisite and fringe benefit statement now specifically applies where an employee’s salary exceeds Rs. 1.5 lakh, with more granular breakup for “profits in lieu of salary” such as ex‑gratia, golden handshakes, etc., to support automated risk assessment.
• Consolidated disclosure of other income (old Forms 12B & 12BAA → new Form 122)
  Income from previous employer and other sources are now reported through a single consolidated Form 122 submitted to the current employer. The form also enables set‑off of loss from house property (interest on self‑occupied housing loan) directly against salary income at payroll level.
• Relief on salary arrears / advance (old Form 10E → new Form 39)
  Relief computation for arrears or advance salary is now aligned with the new provisions, with the relief mechanism retained but the computational steps simplified. Employees receiving arrears or back‑dated revisions must use the updated Form 39 while filing their returns.
• Quarterly TDS statement for salary (old Form 24Q → new Form 138)
  The quarterly salary TDS return now demands far more granular employee‑wise data to support “pre‑fill ready” ITRs for employees and integrates more tightly with TRACES for real‑time mismatch detection between the quarterly statement and salary TDS certificates.

These are only a few extracts – the full checklist spans multiple critical forms that every HR and payroll practitioner must update in their processes for FY 2026‑27 and onwards.

Who Should Use This Checklist

This resource is particularly useful for:

• HR and payroll teams updating salary structures and declaration formats for the first year under the new Act
• CA firms and tax consultants conducting payroll reviews, TDS audits, or employee tax clinics
• Corporate tax and finance teams building or updating in‑house payroll and compliance systems

Wherever you are integrating or redesigning payroll workflows, this checklist can plug directly into your SOPs, checklists, and software requirement documents.

Download the Employee Forms Checklist (PDF)

You can download the detailed “Webtel Employee Forms Checklist – Income Tax Rules 2026” in PDF format here:

Download link: https://webtel.in/images/Webtel_Employee_IT_Forms_Checklist.pdf

Seamless Transition with Web‑eTDS from Webtel

All these renumbered forms, new data fields, and compliance changes are being actively curated and implemented inside Web‑eTDS, the complete TDS/TCS management software from Webtel. Web‑eTDS is being continuously aligned with the New Income Tax Act and Draft Income Tax Rules, 2026, so that payroll and compliance teams can focus on correct data capture instead of worrying about formats and law changes.

Using Web‑eTDS, employers can generate salary TDS certificates, file quarterly TDS returns, and manage employee‑wise information in the new prescribed formats with minimal manual intervention. If you want a seamless transition from the legacy regime to the new Income Tax framework, this checklist together with Web‑eTDS gives you a ready‑to‑deploy path for both process and software compliance.