New Delhi, Apr 13 (KNN) The Income Tax Department has introduced simplified tax forms under the Income Tax Act, 2025, effective April 1, 2026, aimed at improving ease of compliance and streamlining processes for taxpayers.
Under the revised Income Tax Rules, 2026, the erstwhile Form 49AA has been replaced with two new forms, Form 95 and Form 96, designed to cater to specific categories of applicants.
Form 95 will be used for Permanent Account Number (PAN) allotment applications filed by individuals who are not citizens of India, while Form 96 will apply to entities incorporated outside India seeking PAN registration.
Focus on Simplification and Faster Processing
The introduction of separate, category-specific forms is intended to simplify compliance requirements and enhance taxpayer experience. The move is also expected to improve voluntary participation in the tax system.
Officials said the focused structure of the new forms will reduce delays in digitisation, enable faster verification, and ensure quicker processing of PAN applications.
Documentation Requirements
Applicants will be required to submit standard documentation, including proof of identity, proof of address, and proof of date of birth or incorporation, depending on the category.
The reform is part of broader efforts by the government to modernise tax administration, reduce procedural complexity, and strengthen ease of doing business.
Impact on MSMEs
The introduction of simplified PAN application forms will benefit MSMEs, especially those with foreign ownership or cross-border operations, by reducing compliance complexity and processing time.
Faster PAN issuance and clearer documentation requirements will ease tax registration, improve ease of doing business, and support smoother entry and operations for global MSME participants in India.
(KNN Bureau)
