Last Updated on April 1, 2026
Form 130 will be the new TDS certificate for salary and pension under the Income-tax Act, 2025, effective from 1 April 2026. It will replace the existing Form 16 as part of the transition to the new Income-tax Rules, 2026, which renumber several tax forms while maintaining the existing TDS compliance framework.
Form 130 Replaces Form 16 – Key Changes from the Existing Form 16
Form 130 is a direct replacement for Form 16 with the same legal references to Sections 395(4)(b) of the new Act of 2025 and Rule 215(1) of the new Rules of 2026, as was found in Section 203 and Rule 31 under the old regime.
Unlike the two-part structure of Form 16, Form 130 uses a three-part structure: Part A contains information about the deductor/deductee; Part B provides a summary of TDS reconciliation details; and Part C contains Annexure I – salary computations showing gross salary, exemptions, deductions, taxable income and tax or Annexure II – pension/interest for senior citizens.
Employers required to deduct TDS on salary under Section 392 of the Income-tax Act, 2025, and all banks required to deduct TDS on pension/interest based on Section 393(1) must continue to issue TDS certificates that can only be generated through the TRACES portal after the quarterly TDS return is filed.
Who gives Form 130 & when?
Employers, including corporations, businesses, and government entities, are required to provide Form 130 to employees by June 15 of the following year after the quarterly TDS returns have been filed and processed. Senior citizens who fall into the “specified” category receive their Form 130 from banks for TDS on interest income.
Each employer can issue one separate Part A/B certificate, and the last employer may issue one optional Part C certificate. If a taxpayer has lost their original form, they are permitted to have it reissued as long as it is identified as such. Taxpayers must file an amended Form 138 if they need to make corrections.
Taxpayer Implications
Salaried employees and pensioners will use Form 130 to claim TDS credit while filing an Income Tax Return (ITR). Similar to Form 16, taxpayers are not required to submit Form 130 with their return, but should retain it for their records.
Annexure I attached to Form 130 provides a detailed salary computation, similar to Part B of Form 16. This information also supports pre-filled ITR data through tax statements such as Form 168 (previously Form 26AS).
Although the form number has changed, the core purpose of the TDS certificate remains the same—to confirm that tax has been deducted and deposited with the government on behalf of the taxpayer.
Structure of the Form 130
The structure of Form 16 was relatively simple, consisting of two parts; Part A provided basic information about the deductor and the deductee, as well as a TDS summary, whereas Part B included a detailed breakdown of the computation for calculating the salary. In contrast, Form 130 is divided up between three main parts, as well as providing corresponding annexures-
- Part A – provides details related to the employer and employee;
- Part B – outlines TDS reconciliation related to the deposit; and
- Part C – provides detailed salary calculations (Annexure I for salaries, Annexure II for pensions/interests) through the use of a comparative assistant.
Some of the new information included in Form 130 is standardised salary breakups, the specific nature of the applicable tax regimes (for example, equivalent to the new tax regime), and the backend integration with Form 138 (also known as the revised Form 24Q) for TDS reconciliation.
Comparison Table between Form 130 and old Form 16:
| Aspect | Form 16 (Pre-2026) | Form 130 (From Apr 2026) |
| Governing Section | 203, IT Act 1961 | 395(4)(b), IT Act 2025 |
| Structure | Parts A & B | Parts A, B, C (Annexures I/II) |
| Issuance Mode | Manual or TRACES download | TRACES download only |
| Due Date | June 15 | June 15 |
| Purpose | TDS on salary/pension | Same, plus senior citizen interest |
| Senior Citizens | Salary-focused | Adds pension/interest (Annexure-II) |
| Corrections | Manual | Amended Form 138 only |
| Duplicates | Possible | Marked “duplicate” from TRACES |
| Related Forms | 16A, 16B, 27D | 131 (non-salary), 132 (property), 133 (TCS) |
Unlike the previous form, Form 130 represents a more defined format and adheres to the new Income-tax Rules, 2026. Both forms serve the same purpose as TDS Certificates for salaries and pensions, but Form 130 contains three main parts, with corresponding annexures, which provide a higher level of detail that will help to provide clarity for the purpose of completing the Income Tax Return.
Conclusion
Form 130 represents an updated version of the existing Form 16 TDS certificate under the Income-tax Act, 2025. While the form number and structure have changed, the core purpose remains the same—to certify that tax has been deducted and deposited with the government on behalf of the taxpayer.
With the new system coming into effect from 1 April 2026, employers, banks, and taxpayers should become familiar with the updated form structure to ensure smooth tax compliance.
Frequently Asked Questions
1. What is Form 130?
Form 130 replaces Form 16 as the TDS certificate for salary and certain pension-related payments under the Income-tax Act, 2025, effective from 1 April 2026.
2. Why was Form 16 replaced by Form 130?
The forms were renumbered under the Income-tax Rules, 2026, to support changes that make it easier to comply with them. They are now simpler to comply with and to provide better integration with TRACES, which will not modify the existing TDS regulations.
3. What are the main parts of Form 130?
Part A covers deductor/deductee details; Part B shows quarter-wise TDS reconciliation; Part C includes Annexure-I (salary computations) or Annexure-II (pension/interest).
4. Who issues Form 130 and by when?
Employers issue it by June 15 post-Form 138 processing; specified banks issue it for senior citizens’ interest TDS under section 393(1).
5. Can Form 130 be generated offline?
No, only via TRACES download after quarterly Form 138 finalisation; offline versions are invalid.
6. What if I have multiple employers?
Each issues separate Part A/B; the last employer may optionally provide Part C with Annexure-I.
7. How to get a duplicate Form 130?
Download a marked “duplicate” from TRACES if lost; no new processing needed.
8. How to correct errors in Form 130?
File an amended Form 138 (quarterly return); re-download the updated Form 130 from TRACES.
9. Do I need to submit Form 130 with my ITR?
No, claim TDS credits via pre-filled data from Form 168 ; retain your copy for records/scrutiny.
10. What are the related new forms like 131/132/133?
Form 131 replaces 16A (non-salary TDS), 132 replaces 16B (property), and 133 covers TCS, all under section 395(4).
Need Help with Income Tax Filing?
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