What is Form 130? The successor to Form 16 under the new Income-tax Act, 2025

Income Tax rules: Starting April 1, 2026, a key compliance document for salaried taxpayers will undergo a change. Form 16 — traditionally issued by employers as proof of Tax Deducted at Source (TDS) on salary— will be replaced by Form 130 under the Income-tax Act, 2025.

The transition does not alter the core purpose of the document but standardises and expands its scope under the new tax framework.

What is Form 130?

Form 130 is an annual TDS certificate issued by an employer to salaried employees or pensioners. It certifies that tax has been deducted from income and deposited with the government.

Functionally, it mirrors Form 16. It includes a detailed summary of salary income, deductions, and taxes paid—making it a critical document for filing income tax returns (ITR). 

Must Read: New Tax Regime 2026: How salary components, deductions will tweak under Income Tax Act 2025 from April 1

When will Form 130 be issued?

First issuance: June 15, 2027 Covers: Tax Year 2026–27 Transition phase: Employees will still receive Form 16 in June 2026 for FY 2025–26 Structure of Form 130

Form 130 is divided into three parts:

Part A: Employer and employee (or specified senior citizen) details Part B: Income paid and TDS deducted Part C: Detailed computation, split into two annexures: Annexure I: Salary income, exemptions, deductions, taxable income, tax liability Annexure II: Applicable to specified senior citizens—includes pension and interest income details Why Form 130 matters

Beyond salary income, Form 130 also applies to specified senior citizens earning interest income under Section 402(39). It enables taxpayers to claim TDS credit and serves as an official record of tax compliance.

What is Form 16 and what changes now?

Form 16 has long served as the TDS (Tax Deducted at Source) certificate for salary income, issued annually by employers. It provides a detailed summary of salary earned, tax deducted and deposited, and applicable deductions claimed during the financial year. It also extends to interest income earned by certain senior citizens.

As per current tax rules, Form 16 must be issued by June 15 of the financial year immediately following the relevant tax year. This timeline continues under the new regime as well.

From April 1, 2026, Form 16 will be replaced by Form 130, which will serve the same purpose under the updated tax framework.

What about Form 16A?

The changes are not limited to salary income. Form 16A, which is the TDS certificate for non-salary income—such as rent, interest, professional fees, and consultancy income—will be renamed as Form 131 from April 1, 2026.

Unlike Form 130, which follows an annual issuance cycle, Form 131 will continue to be issued quarterly, within 15 days from the due date of filing the corresponding TDS statement.

Other key form changes

The new Income-tax Act also renames several other important forms:

Form 26AS (annual tax statement) → Form 168 Form 24Q (quarterly TDS return for salaries) → Form 138

These changes are aimed at streamlining tax reporting and aligning documentation under a new numbering system.

Why these forms matter for taxpayers

Whether it is Form 16, 130, 16A, or 131, these documents are critical for taxpayers as they act as proof that tax has already been deducted and deposited on their behalf. They form the backbone of income tax return (ITR) filing, helping individuals reconcile income, claim deductions, and avoid discrepancies.

For investors and salaried individuals, these certificates also play a role in:

Verifying tax credits Cross-checking income disclosures Avoiding notices due to mismatches

FAQs on Form 130

1. Is Form 130 different from Form 16? No, the purpose remains the same. Form 130 replaces Form 16 under the new tax law with a similar structure and function.

2. Do I need to attach Form 130 while filing ITR? No. It is not required to be attached but should be used to accurately file returns.

3. Can I receive multiple Form 130s? Yes. If you have worked with multiple employers in a financial year, each employer will issue a separate Form 130 (Part A and B).

4. What if I lose my Form 130? You can request a duplicate copy from your employer.

5. Is it mandatory for employers to issue Form 130? Yes, issuing Form 130 is compulsory under the law.

6. What is the due date for issuance? June 15 of the financial year following the relevant tax year.

7. Can errors in Form 130 be corrected? Yes. Employers can file a revised TDS statement (Form 138) and issue a corrected Form 130.

8. Should I keep a copy of Form 130? Yes. It must be preserved for records and future reference.