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Definition · 6 min read

What is Form 168 in Income Tax Act 2025: TDS Credit Statement Replacing Form 26AS for FY 2026-27 onwards

Form 168 is the annual tax credit statement issued under the Income Tax Act 2025. From the assessment year following FY 2026-27 it replaces Form 26AS as the official record of TDS, TCS, advance tax, and self-assessment tax credits available to a taxpayer. Each entry carries the new income-type payment code from the 1001-1092 series.

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Published 12 June 2026
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Knowledge Card
Problem

From FY 2026-27 onwards Indian deductors and deductees must transition from Form 26AS to Form 168, with the additional complexity that the new income-type codes 1001-1092 replace section-name reporting and a single mis-classification flows into the recipient's tax credit record.

How It's Resolved

Map every legacy Section 194x code to its FY 2026-27 income-type code at deduction time, deduct and report under the new code, and reconcile Form 168 entries to the books on the basis of the income-type code, gross amount, and deductor TAN.

Configuration

A maintained mapping table from old Section codes to new income-type codes 1001-1092, refreshed when CBDT issues clarifications, plus an automated check that flags Form 168 entries whose code does not match the books.

Output

A reconciled Form 168 view at quarter-end and year-end with every deductor entry tied to a books entry under the matching new income-type code, and a clean audit trail for any open mismatches.

Definition

Form 168 is the annual tax credit statement issued under the Income Tax Act 2025. It consolidates every tax payment that has been credited against a taxpayer’s PAN during a financial year — TDS deducted by payers, TCS collected by sellers, advance tax, self-assessment tax, regular assessment tax, and refund adjustments — and presents them as a single statement the taxpayer can rely on for return filing.

In one sentence: Form 168 is the FY 2026-27-onwards version of Form 26AS, restructured around the new income-type payment codes 1001 to 1092.

Regulatory Reference

Form 168 is prescribed under the Income Tax Act, 2025 and the Income Tax Rules, 2025 as part of the comprehensive direct-tax framework that takes effect from FY 2026-27 onwards. It is hosted on the e-filing portal and is accessed by the taxpayer through the same login that previously surfaced Form 26AS.

The accompanying notifications publish the income-type payment code list — codes 1001 to 1092 — that replaces the old Section-name reporting (Section 194C, 194J, 194H, 194I, 194Q, 194O, and so on). A deductor now reports the income type using the four-digit code rather than the Section name. Some examples that appear regularly in reconciliation work:

  • Code 1021 — payments to contractors and sub-contractors (legacy Section 194C)
  • Code 1043 — fees for professional or technical services (legacy Section 194J)
  • Code 1052 — rent (legacy Section 194I)
  • Code 1071 — commission and brokerage (legacy Section 194H)
  • Code 1082 — purchase of goods (legacy Section 194Q)
  • Code 1092 — e-commerce operator payments (legacy Section 194O)
  • Codes 393, 394, and 413 — newly introduced payment categories that have no clean legacy section equivalent.

Why It Matters

Three industries where Form 168 is operationally heavy:

IT services and SaaS. A mid-sized IT company receives Form 168 lines from hundreds of corporate customers, each classifying the engagement either as professional fees (1043) or as contractor payment (1021). The aggregate has to reconcile to revenue.

NBFC lending and asset management. Interest payments, brokerage, and commission flow into multiple new codes (1041, 1071, 1072 and others). For an NBFC the Form 168 view runs into lakhs of lines a year.

Real estate and rental businesses. Rent payments under code 1052 (legacy 194I) plus joint development credit notes plus TDS on property purchase create a multi-code Form 168 footprint that must reconcile to the books.

How to Spot It in Practice

Four practical signals:

  1. The taxpayer login on www.incometax.gov.in shows a “Form 168” tab for AY 2027-28 onwards alongside the legacy “Form 26AS” tab for earlier years.
  2. Every entry carries a four-digit income-type code from the 1001-1092 series rather than a section name.
  3. Deductor TAN and deductor name are visible against each line, and the gross payment amount is shown beside the tax deducted.
  4. A status column indicates whether the deduction is provisional (return filed by the deductor, payment not yet matched in OLTAS) or final.

Common Misconceptions

  • “Form 168 is just a renamed Form 26AS.” The structure is genuinely different — flat chronological view by income-type code rather than parted view by section.
  • “Code 1021 is exactly equal to old Section 194C.” Mostly yes, but a few sub-categories within 194C have moved to other codes. Treat the legacy-to-new mapping as a lookup not as identity.
  • “Section 194J no longer exists.” The Section is still the legal levy provision in the Act; what changed is the reporting code on the return and on Form 168.
  • “Reconciling Form 16A to Form 168 is enough.” Reconcile all three — books, Form 16A, and Form 168. Form 168 is the credit available; Form 16A is the deductor’s certificate; books are the income recognised. All three must agree.
Primary reference: Income Tax Department — which issues Form 168 under the Income Tax Act 2025 framework and publishes the new income-type payment code list 1001-1092 that replaces section-name reporting.
Related Reading
▸ what is Form 26AS ▸ TDS reconciliation glossary ▸ what is TDS deduction

Frequently Asked Questions

When does Form 168 replace Form 26AS?
Form 168 applies from FY 2026-27 onwards. Form 26AS continues to be the official credit statement for assessment years up to and including the one following FY 2025-26. Taxpayers will see both forms during the transition — Form 26AS for legacy years and Form 168 for FY 2026-27 and later.
What are the new income-type codes 1001-1092 in Form 168?
Codes 1001 to 1092 are the payment-nature classification system that replaces the old Section 194x naming. For example fees for professional or technical services that earlier sat under Section 194J now report under code 1043; contractor payments earlier under 194C now report under code 1021. The taxpayer view in Form 168 shows the income-type code, the deductor name, the gross amount, and the tax deducted.
How is Form 168 different from Form 26AS in layout?
Form 26AS organised entries by Section — separate parts for 194C, 194J, 194I, and so on. Form 168 organises entries by income-type code in a single chronological table with the code as a column. This is a flatter, more machine-readable structure that lines up with how the new TDS return file is built.
Does Form 168 replace Form 16 or Form 16A?
No. Form 168 is the consolidated credit statement issued by the department to the taxpayer. Form 16 (salary TDS certificate) and Form 16A (non-salary TDS certificate) continue to be issued by the deductor to the deductee. The three documents have to reconcile to each other.
What is the most common reconciliation error involving Form 168?
Income-type code mismatch — the deductor classifies a payment under one code (for example 1043 professional fees) while the recipient's books treat it as another (for example 1021 contractor). Both treatments are then defensible but Form 168 will reflect the deductor's choice, and the recipient must either accept the classification or raise a deductor correction request.

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