Form 130 is the new name for Form 16, the salary TDS certificate. From Tax Year 2026-27, under the Income-tax Act 2025 and the Income-tax Rules 2026, employers issue Form 130 instead of Form 16. This guide explains what changed, what stayed the same, and what you need to do, in plain language.
Quick answer: Form 16 becomes Form 130 for salary earned in Tax Year 2026-27. It does the same job, must come from the TRACES portal, and is due by 15 June 2027. The Form 16 you get in June 2026 (for FY 2025-26) is the last one under the old name.
What is Form 130, in simple words
When your employer pays your salary, it deducts a bit of tax and sends it to the government. At the end of the year it hands you a certificate that says how much you earned and how much tax it already paid for you. For years that certificate was called Form 16. The new law simply renames it Form 130. Think of it like a school changing the name of a report card. The report is the same, the name on top is new.
Why the name changed
India replaced the old Income-tax Act, 1961 with the new Income-tax Act, 2025, which took effect on 1 April 2026. As part of the clean-up, salary TDS moved to Section 392, non-salary TDS to Section 393, and the certificate forms were renumbered under the Income-tax Rules, 2026. Form 16 (salary) became Form 130, and Form 16A (non-salary, like TDS on interest or rent) became Form 131.
Form 16 vs Form 130 at a glance
Salary TDS certificate under the 1961 Act. Two parts (A and B). Used up to FY 2025-26.
Salary TDS certificate under the 2025 Act. Three parts (A, B and C). Used from Tax Year 2026-27.
The three parts of Form 130
- Part A lists the basics: the employer and employee names, PAN and TAN, the tax year and how long you worked there.
- Part B shows the money: your salary quarter by quarter, the TDS deducted and deposited, and the challan details of each deposit.
- Part C is the computation: your total income, deductions and exemptions, the regime you chose and the final tax. A separate annexure handles pensioners.
What actually changes for a salaried employee
Honestly, very little. You still get one certificate a year, it still comes from your employer through TRACES, and you still use it to file your return. The name is Form 130, the layout is a little clearer, and the computation sits in Part C. If you were comfortable reading Form 16, you will be comfortable reading Form 130.
What employers need to do
- For salary paid in Tax Year 2026-27, issue Form 130, not Form 16.
- Issue it through the TRACES portal. A certificate made offline in Word or Excel is not valid.
- Issue it by 15 June 2027 (15 June following the tax year).
- For non-salary TDS, such as interest, rent or professional fees, issue Form 131 in place of the old Form 16A.
- Quote the new sections (392 for salary, 393 for the rest). Our Section 393 mapping tool turns any old TDS section into its new one.
Timeline to remember: June 2026 you receive Form 16 for FY 2025-26 (the last one). June 2027 you receive your first Form 130, for Tax Year 2026-27.
Frequently asked questions
Is Form 16 replaced by Form 130?
Yes. From Tax Year 2026-27, the salary TDS certificate is called Form 130 instead of Form 16. It is issued under the Income-tax Act 2025 and the Income-tax Rules 2026. Your Form 16 for FY 2025-26, issued around June 2026, is the last one under the old name.
When will I get my first Form 130?
The first Form 130, for Tax Year 2026-27, is due by 15 June 2027. The certificate you receive in June 2026 is still a Form 16, because it covers the earlier year.
Is Form 130 very different from Form 16?
No. It does the same job, showing your salary, the tax deducted and deposited, and your income and tax computation. It is organised into three parts and adds a clearer computation annexure, but for most salaried people it reads much like Form 16 with a new name.
Can my employer give me Form 130 as a PDF they made?
No. Like Form 16, Form 130 must be generated and downloaded through the government TRACES portal. A self-made certificate is not valid.
What about Form 16A for non-salary TDS?
The non-salary TDS certificate is now Form 131. So a bank or a client who deducts TDS on interest, rent or fees issues Form 131 in place of the old Form 16A.
What should employers do now?
For any salary paid in Tax Year 2026-27, issue Form 130, not Form 16, through TRACES by 15 June 2027, and issue Form 131 for non-salary TDS. Using the old form names for the new year can cause mismatches on the e-filing portal.
Official source: Confirm the current forms and rules on the new Act pages at incometax.gov.in.
Related: Old TDS sections under Section 393 · Form 26AS to Form 168 · AIS vs 26AS vs TIS · TDS due dates FY 2026-27