Form 168 Replaces Form 26AS: What Changes for TDS Credit From Tax Year 2026-27
By GST Reco Pro
GST Reco Pro builds browser-based tools for GST and TDS reconciliation, used by Chartered Accountants and corporate tax teams across India.
Under the Income-tax Rules, 2026, the annual tax statement familiar as Form 26AS moves to Form 168 for tax year 2026-27 onward. For this filing season 26AS still applies. Here is what the change means for deductors, deductees and the TDS credit everyone relies on.
For two decades, Form 26AS has been the single statement every Indian taxpayer checks before filing: the TDS deducted against their PAN, the advance and self-assessment tax they paid, and refunds. Under the Income-tax Rules, 2026, its successor for tax year 2026-27 onward is Form 168. Commentary describes Form 168 as largely a continuation of 26AS, with the reach of the Annual Information Statement, including high-value financial transactions, carried into it.
For income earned in FY 2025-26, filed this year, Form 26AS remains the operative document. Form 168 becomes the statement for income earned from 1 April 2026.
What does not change: TDS credit follows the deductor's statement
The most important rule carries over. TDS credit for the deductee depends on what the deductor reported in the quarterly TDS statement, matched to a valid challan. If a deductor deducts tax but files the statement late, quotes a wrong PAN, or consumes the wrong challan, the deductee's annual statement will not show the credit, and the deductee's claim in the return is restricted to what the statement shows.
Why this matters more in the transition year
In the first year of the new Act, nearly every identifier on the deductor's side has changed: forms (Form 140 for 26Q, Form 138 for 24Q), 4-digit payment codes, the ITNS 281N challan, and tax year in place of assessment year. Each change is a new way for a deduction to be reported but not credited, and the deductee only finds out when the annual statement is checked.
For deductors: make the statement match the challan
- Reconcile every quarter's challans to deductions by payment code before filing Form 138 or Form 140.
- Validate deductee PANs before filing; a wrong PAN means a deductee with no credit and a complaint later.
- Use the tax year correctly on challans, especially for payments made after 1 April 2026 for deductions made before it.
- Issue Form 131 (formerly 16A) and Form 130 (formerly 16) only after the statement is processed, so the certificate matches what deductees will see.
- Process correction requests quickly. A deductee's credit is held up until the correction statement is processed.
For deductees: check quarterly, not at filing time
Look at the annual tax statement after each quarter's TDS due date has passed, rather than in July of the following year. A missing credit found in November can be fixed by the deductor in the next correction cycle. Found the week before the return is due, it usually means filing without the credit or waiting for the deductor.
Reconciling challans to deductions is the deductor's half of every credit that appears in Form 168. GST Reco Pro converts ITNS 281 and 281N challan PDFs to Excel in bulk, in your browser, so the challan side of the reconciliation is ready before the statement is prepared.
Convert TDS challans to Excel →Related reading: preparing the Q2 2026-27 Form 140 statement.
Read the Form 140 guide →Frequently Asked Questions
Has Form 168 replaced Form 26AS?
Yes, for tax year 2026-27 onward. Under the Income-tax Rules, 2026, Form 168 is the annual tax statement that succeeds Form 26AS. For income earned in FY 2025-26, Form 26AS remains the applicable statement.
Should I file my return using Form 26AS or Form 168 this year?
For returns of income earned in FY 2025-26, use Form 26AS. Form 168 applies to income earned from 1 April 2026, in tax year 2026-27.
TDS appears in AIS but not in my annual tax statement. Can I claim it?
TDS credit is allowed on the basis of the annual tax statement, which reflects the deductor's TDS statement. Ask the deductor to file a correction statement so the credit appears there before you claim it.
Why is my TDS credit missing from the annual statement?
Usually because the deductor has not filed the quarterly TDS statement, quoted a wrong PAN, used the wrong challan or form, or filed late. The deductor has to file a correction for the credit to appear.