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

Form 132 is a TDS certificate generated for TDS deducted and paid for transactions like property sale, rent payments above Rs. 50,000, specified contract payments, commission and professional fees, and sale of cryptocurrencies (VDA). This form replaces form 16B, 16C, 16D and 16E issued under the Income Tax Act, 1961.

What is Form 132 under the Income Tax Act 2025?

TDS certificate under Form 132 is issued for specified transactions, like commission, rent, professional fees and contract payments. It is issued under Section 395(4) of the Income Tax Act, 2025. This form consolidates parallel forms under the 1961 act, namely, Form 16B, 16C, 16D and 16E.

It is issued by the government's TRACES portal, not by the deductor themselves, making it tamper-proof and legally recognised for assessment, reconciliation, and credit purposes.

Which old forms does Form 132 replace?

* Specified payments like works contract, professional services, commission and brokerage, when the payer is an individual or HUF whose business turnover does not exceed Rs. 1 crore, or professional income falls within Rs.50 lakhs in the preceding financial year. Parallel provisions are dealt under section 194M of the Income Tax Act, 1961.

The corresponding challan cum statement has also been unified  - Forms 26QB, 26QC, 26QD, and 26QE are now replaced by a single Form No. 141. So the entire transaction chain from payment > TDS deduction > challan filing (Form 141) > TDS certificate (Form 132) is now standardized under one framework.

Transactions covered under Form 132

Form 132 needs to be issued for the following transactions.

Form 132 can only be issued by the deductor after Form 141 (the unified challan-cum-statement) has been filed and processed on the TRACES portal.

Structure of Form 132 - What It Contains

Form 132 is a structured certificate with the following parts:

One smart feature of the new Form 132 is that it is transaction-sensitive - the certificate dynamically adapts its content based on the nature of the transaction selected when filing Form 141. So a rent TDS certificate and a property TDS certificate will both be in Form 132, but the content visible on each will reflect the specific transaction type.

Due Date for Issuing Form 132

Form 132 needs to be issued within 15 days from the due date for issuing challan-cum-statement under Form 141 of the Income Tax Act, 2025. The following timeline shows the flow of TDS deduction, payment, challan generation and certificate issue.

• Deduct TDS on earlier of payment or credit
• Deposit TDS and file Form 141 within 30 days from the end of that month
• Issue Form 132 to the deductee within 15 days after filing Form 141

Therefore, Form 132 cannot be issued after 45 days of the transaction in any case.

How to Download Form 132 from TRACES - Step-by-Step

Form 132 cannot be prepared manually - it must be downloaded exclusively from the TRACES portal. A certificate generated through any other means is not legally valid.

Follow these steps to download Form 132:

1. File Form 141 - Before you can generate Form 132, you must successfully file the challan-cum-statement in Form 141 on the Income Tax portal (incometax.gov.in). Wait for it to be processed by the system.
2. Log in to TRACES - Go to https://www.tdscpc.gov.in and log in as a 'Deductor' using your TAN (Tax Deduction Account Number) and password.
3. Navigate to Downloads - Once logged in, go to the 'Downloads' section. Look for the option 'Form 16B/16C/16D/16E' (or 'Form 132' once the portal is updated to the new nomenclature).
4. Submit the Download Request - Select the relevant financial year, enter your PAN and the PAN of the deductee, and submit the request. The system will verify your Form 141 filing before allowing the download.
5. Download the Certificate - Once the request is processed (usually within a few hours), go to 'Requested Downloads' and download the PDF certificate.
6. Sign and Issue - After downloading, sign the certificate - either digitally (using a DSC) or manually (physical signature). Then provide it to the deductee.

Note: A duplicate certificate can also be downloaded at any time from TRACES by the deductor/collector in case the original is lost.

Can Form 132 Be Issued Offline?

No. Form 132 cannot be prepared or issued offline. The certificate must be generated exclusively from the TRACES portal. Any certificate prepared through any other mode will not be treated as a valid or legal TDS certificate under the Income Tax Act 2025.

How to Correct or Revise Form 132

Corrections in form 132 can be made by revising Form 141. Here’s the procedure:

1. Identify the error in the original Form 141 filing.
2. File a correction statement for Form No. 141 on the Income Tax portal.
3. Once processed, log in to TRACES and generate a revised Form 132.
4. Issue the revised certificate to the deductee.

Form 132 vs. Form 16B / 16C / 16D / 16E - Key Differences

Here's a quick comparison between the old forms and the new Form 132:

How the Deductee uses Form 132 for TDS Credit

If you are the deductee - the property seller, landlord, contractor, or VDA seller - Form 132 is an important document for you at the time of ITR filing. Here's what you need to do:

1. Collect Form 132 from the deductor (buyer / tenant / payer) within the due date.
2. Cross-check the TDS amounts in Form 132 with your AIS (Annual Information Statement) on the income tax portal.
3. While filing your ITR, the TDS amount reflected in Form 132 will auto-populate (based on TRACES data) in the pre-filled ITR.
4. Claim the TDS credit in your ITR to get a refund or reduce your tax payable.

Keep Form 132 safe - it may be required for assessment proceedings, reconciliation, or in case of a scrutiny notice from the Income Tax Department.

Penalty for Not Issuing Form 132

Under the Income Tax Act 2025, any person (deductor) who fails to issue a TDS certificate to the deductee is liable for penalty under the relevant penalty of Rs.500 per day of default, for each day the failure continues. However, the penalty amount cannot exceed the TDS amount for which the certificate was required to be issued.

Also Read:
1. Form 121
2. Form 124
3. Form 128
4. Form 130
5. Form 140
6. Form 145
7. Form 156
8. Form 188