Budget 2026: the four changes that affect every CA practice
Beyond the headline slab tweaks, four Budget 2026 changes - Section 393 unified TDS, Form 168 rollout, Section 87A rebate at ₹60K, and the new presumptive professions list - restructure the daily compliance workflow.
Budget 2026 - the four operational changes that matter
The Finance Act 2025 (enacted with the Union Budget on 1 February 2025) brings the IT Act 2025 into force on 1 April 2026. Beyond the slab tweaks, four operational changes restructure the daily compliance workflow.
1. Section 393 - unified TDS framework
The 14 separate TDS sections (192, 194A, 194C, 194H, 194I, 194J, 194Q, 194R, 194S, 194T, 195, etc.) are consolidated under a single Section 393. Substantive rates and thresholds are unchanged; the change is purely structural.
Practice impact:
- Update TDS challan templates to cite Section 393 + the new challan code series (1001-1067) replacing BSR codes.
- TDS certificate format unchanged in substance; renamed to Form 130 (annual) and Form 131 (quarterly).
2. Form 168 - the Tax Passbook
The Annual Information Statement (AIS), Form 26AS, and the TIS consolidate into a single Form 168 - Tax Passbook.
Practice impact:
- All reconciliation tools must point to Form 168 from AY 2027-28 onwards.
- High-value transaction reporting thresholds unchanged; the report just shows up in Form 168 instead of three separate documents.
3. Section 87A rebate at ₹60,000
The rebate ceiling under the new regime rises from ₹25,000 to ₹60,000. With the ₹75,000 standard deduction, gross salary up to ₹12,75,000 is effectively tax-free under the new regime.
Practice impact:
- The break-even between new and old regime shifts upward. For most salaried taxpayers earning under ₹15 lakh with no home loan and limited 80C exhaustion, the new regime now wins.
- The Income Tax Calculator flips the regime recommendation automatically based on entered deductions.
4. New presumptive professions
Section 44ADA (Section 194 in the IT Act 2025) eligible-professions list now includes:
- Cybersecurity consultants
- Data scientists
- AI specialists
- Digital marketing consultants
Practice impact:
- IT-services freelancers earning up to ₹75 lakh (₹1.87 crore if ≥95% digital) can declare 50% as income.
- Combined with the new regime, this is a meaningful tax-rate reduction for the consultant cohort.
What stays the same
- GST rate slabs unchanged
- ROC form set unchanged (V3 portal mandate continues)
- MSME-1 thresholds unchanged
- Reviewed by CA Vikram Shah, Head of Tax Research