Taxpayers with overseas income could need a CA's certificate
A couple of important changes will reach taxpayers from next month. One of them is that you will need a CA's certificate to claim a foreign tax credit when the foreign tax you paid is more than ₹1 lakh in a year.
The new Income Tax (I-T) Act comes into force on 1 April 2026. The Central Board of Direct Taxes (CBDT) has already released the draft Income Tax Rules and the proposed forms. Most of the changes are small, but two major ones start next month: the CA's certificate for foreign tax credit (FTC) and compulsory disclosure of crypto income.
Foreign tax credit
If you've paid more than ₹1 lakh in tax abroad, showing documents won't be enough anymore. CA Chirag Chauhan, founder of CA Chauhan & Company, explained it this way: "Once your foreign tax goes above ₹1 lakh, documentary proof alone won't do. You'll have to submit a CA's certificate to claim the credit."
Under Rule 76 of the new rules, a CA must verify the FTC claim (Form No. 44) if the taxpayer is a company, or if the total foreign tax paid is more than ₹1 lakh.
Crypto income
The second big change is about crypto. This income will now be easier for the tax department to spot, because it will show up in the Annual Information Statement/Taxpayer Information Summary (AIS/TIS).
Chauhan said the amended Rules 114-F, 114-G and 114-H now require crypto exchanges to share information with the tax department. "You can no longer keep your crypto income under wraps," he said.
In practice, crypto investors will face automatic information exchange, so any holdings or transactions they haven't disclosed can be flagged through the AIS/TIS.
New names for tax forms
Several tax forms have also been renamed under the new rules. Form 16A becomes Form 131, and Forms 15G and 15H become Form 121. Form 26AS is now Form 168, Form 16 is Form 130, and Form 12BA is Form 123.
CA Pratibha Goyal, partner at PD Gupta & Company, said you should plan ahead for this. "From the next financial year, ask your employer for Form 130. Under the Income Tax Act 2025, what you knew as Form 16 will now be issued as Form 130," she said.
