Form 132 Income Tax Act 2025: Complete Guide to the New TDS Certificate

Form 132 is a unified TDS certificate for specified transactions. Under the provisions of the Income Tax Act 1961, TDS certificate for certain transactions like property sales, rent, VDA sales were issued in different certificates. They have now been merged into a single certificate - Form 132. 

What is Form 132 Under the Income Tax Act 2025?

The Income Tax Act 2025 has simplified many provisions and streamlined the law, ensuring simplicity, relevance to the current financial landscape and thereby ensuring better compliance. Earlier, the following transactions required different TDS certificates to be issued by the deductors.

1. Transfer of immovable property
2. Transfer of VDA
3. Payment of rent to a person other than specified person
4. Fee for technical services, brokerage or commission and works contract, paid by certain persons.

Under the new act, TDS certificates for all the aforementioned transactions have been merged into Form 132. Every deductor who has remitted TDS to the government for the eligible transactions, should provide form 132 to the deductee.

Which Old Forms Does Form 132 Replace?

The following forms are replaced by Form 132 under the provisions of the Income Tax Act 2025.

Who is Required to Issue Form 132?

The person who has deducted TDS and deposited the same to the government is responsible for providing Form 132 - TDS certificate to the payee. The following table lists down the persons responsible for deducting TDS for different kind of transactions. 

* Section numbers as per the Income Tax Act 1961 are provided for reference purpose only.

Structure of Form 132 

Form 132 is broadly divided into three parts - A, B and C. The following table briefly explains the content of Form 132.

Due Date for Issuing Form 132

Every deductor should file a quarterly statement using Form 141 for the transactions against which TDS is deducted for the quarter. Form 132 needs to be issued to every deductee within 15 days from the date on which Form 141 is filed. 

How to Download Form 132 from TRACES?

It is to be noted that the payee themselves cannot download Form 132. It is the responsibility of the deductor to download Form 132 from the TRACES portal and provide it to the deductee. The deductor can download it from the portal through the following steps:

1. Visit the TRACES portal after you have received a confirmation message on filing Form 141.
2. Navigate to dashboard > downloads > TDS certificates.
3. Enter details like challan number, PAN of the deductee, amount of the transaction and TDS deducted, and request download. 

You will be able to download the certificate after its generation. Ensure that you provide the same to the deductee within 15 days of filing

How to Correct or Revise Form 132?

There is no direct way to correct Form 132 if any incorrect particulars have been entered. On discovery, the deductee should inform the deductor of the error. An amendment needs to be made in Form 141 by the deductor. Once the requisite changes are made in Form 141, a fresh Form 132 is generated and provided to the payee.

How the Deductee Uses Form 132 for TDS Credit?

Form 132 can be used as direct evidence provided by the payer for authenticity of the transaction and TDS deduction. Taxpayers should cross-verify the tax credit as reflected in their Form 168/AIS against the credit as per Form 132. In case of any discrepancies, feedback can be raised on the AIS portal. This exercise ensures the claim of full TDS credit and accurate filing.

Penalty for not Issuing Form 132

If Form 132 is not provided by the deductor within the specified timeline, they are liable for a penalty of ₹500 per day of every continuing day of default.