In this guide
The certificate for tax deducted from salary under the Income-tax Act, 2025 is Form 130 from 1 April 2026. It replaces Form 16 for salary payments covered by the new Act.
It is issued by your employer at the end of the tax year. Form 130 helps you check salary income, deductions and tax deducted at source (TDS), and claim the TDS credit in your income tax return. It is not an alternative to filing an ITR.
Form 130 and Form 16: Which applies?
The applicable certificate depends on when the salary was paid, because salary TDS is generally linked to the date of payment.
| Salary payment date | Applicable framework and certificate |
|---|---|
| Before 1 April 2026 | Income-tax Act, 1961; Form 16 |
| On or after 1 April 2026 | Income-tax Act, 2025; Form 130 |
Form 130 applies to salary TDS under section 392, subject to the specified exception in subsection (7). It also covers certain pension or interest payments made by a specified bank to a senior citizen. In that case, the bank issues the certificate.
What information does Form 130 contain?
The form has three parts:
- Part A identifies the employer or specified bank and the employee or senior citizen.
- Part B summarises amounts paid or credited and TDS deducted and deposited.
- Part C contains the income and tax computation. Salary details are in Annexure I; the specified senior-citizen pension and interest case is in Annexure II.
Check your name, PAN, tax year, employment period, salary, deductions and TDS. Compare the certificate with your payslips, investment records and tax-credit information.
When is Form 130 due?
For Tax Year 2026–27 (1 April 2026 to 31 March 2027), the ordinary deadline is 15 June 2027.
The certificate is based on the employer’s or bank’s TDS reporting. The deductor must file the relevant quarterly TDS statements before issuing it, including Form 138 for salary TDS. The employer or bank obtains the certificate through TRACES and gives it to you. It may be signed electronically or manually, but it must be prepared in the prescribed manner.
If you have not received it by the due date, ask your employer’s payroll or finance team to check whether the TDS statements were filed and processed.
What if you changed jobs during the tax year?
Each employer issues Parts A and B for the period you worked there. Part C may be issued by each employer or by your final employer.
When you change jobs, give your new employer details of salary and TDS from your previous employer so it can account for them when calculating salary TDS. Check that the certificates cover all employers and the correct employment periods.
How to use Form 130 before filing your ITR
Use it as a reconciliation document:
- Compare salary and TDS with your payslips and payroll records.
- Check that TDS is credited to your PAN in your tax records.
- Report salary and claim the corresponding TDS credit in the appropriate return for Tax Year 2026–27.
- Ask the employer or bank to correct missing or incorrect TDS reporting, if needed.
The TDS certificate does not confirm that your total tax is paid. You may have other income or tax to report. See TaxClear’s salaried employee ITR guide and TDS and TCS return guide for the new forms.
Frequently Asked Questions
Does Form 130 replace Form 16?
Yes. Form 130 replaces Form 16 for salary TDS covered by the Income-tax Act, 2025.
Will I receive Form 130 for salary paid before 1 April 2026?
No. Payments governed by the Income-tax Act, 1961 remain covered by Form 16.
Is Form 130 issued quarterly?
No. It is an annual certificate. Employers file quarterly TDS statements.
Will every employee receive Form 130?
It is a TDS certificate. If you expect one but have not received it, ask your employer to check the reporting and certificate status.
Does Form 130 mean I do not need to file an ITR?
No. Your ITR filing requirement depends on your circumstances. Form 130 provides information for reporting income and claiming TDS credit.
