Form 130: New Salary TDS Certificate Under Income Tax Act, 2025

Form 130 is a tax certificate issued by the employer, which contains quarter-wise details of TDS deducted, a detailed break-up of salary and deductions, and so on. Earlier known as Form 16, this certificate is issued under section 395 of the Income Tax Act, 2025, read with 215 of the Income Tax Rules, 2026.

Form 130 will be issued for income earned during the tax year 2026-27 (from the next ITR filing season). For the current filing season, since the income earned relates to FY 2025-26, Form 16 will be issued, not Form 130. 

What is Form 130?

Form 130 is an annual certificate of Tax Deducted as Source, issued to the employee or pensioner by the company after the end of the financial year. It is one of the most essential and convenient documents required to file ITR. 

Which Form does Form 130 replace?

Form 130 replaces Form 16 issued under section 203 of the Income Tax Act 1961, read with rule 31 of the Income Tax Rules, 1962.

Availability of Form 130: Timeline and Process

Structure of Form 130

Form 130 is divided into 3 parts, A, B, and C, as compared to 2 parts in Form 16.

Part A - Employer and Employee Details

Part B - Salary or Pension paid and TDS Deducted

The second part contains a summary-level reconciliation of salary paid and the TDS deducted. Quarter-wise details of the following are provided:

• Receipt numbers of quarterly statements
• Amount paid or credited (Salary or pension)
• Rate of TDS deduction
• Amount of TDS deducted
• Amount of TDS deposited

Along with that, challan-wise TDS deposits are provided, thereby ensuring complete transparency. Details like

• Challan Serial Number
• Date of transfer
• BSR code of the branch

are provided.

Part C - Annexures

Annexure -A

It contains a complete income computation of the employee, including salary, other income, deductions, exemptions, choice of regime and tax calculation. 

Annexure-B

This is especially applicable for pensioners, which contains the pension and other income, deductions, exemptions and detailed income and tax calculation.

Form 130 vs Form 16 - Key Differences

Form 130 has additional disclosures, in a detailed manner, compared to Form 16. The following table presents differences between Form 16 and Form 130.

Annexure II of Part C needs to be issued by the specified bank to the senior citizen who has opted not to file an ITR, as per the provisions of section 393. (ITR exemption  when TDS is deducted by the bank for pension income maintained in a bank account)