Salary TDS certificate: Form 130 under the 2025 Act (formerly Form 16)
Form 130 replaced Form 16 for salary TDS certificates from tax year 2026-27. Employers issue it by 15 June after the year; delays cost ₹100 a day.
Short answer
Form 130 is the annual certificate an employer gives each employee showing salary paid and tax deducted, replacing Form 16 under the Income-tax Rules 2026. Certificates for FY 2025-26 were issued as Form 16 by 15 June 2026. The first Form 130, for tax year 2026-27, is due by 15 June 2027. Late issue can attract ₹100 a day.
- Due date
- 15 June after the tax year
- Who issues
- Employers that deducted tax on salary
- Frequency
- Annual
- Parts
- Part A (from TRACES) and Part B (salary details)
- Penalty
- ₹100/day of delay, up to the TDS amount
- Portal
- TRACES for Part A
- Law
- 2025 Act and Rules 2026 (formerly sec. 203, Form 16)
What is Form 130?
Form 130 certifies the tax an employer deducted from an employee's salary during the tax year and deposited with the government. It is the employee's main document for filing the income tax return and checking that TDS shows correctly in the annual statement.
It replaced Form 16 under the Income-tax Rules 2026. The change follows the tax year: FY 2025-26 certificates, issued by 15 June 2026, were Form 16 under the 1961 Act. Salary paid from 1 April 2026 will be certified in Form 130 by 15 June 2027. Related forms were also renumbered, including Form 12BA to Form 123 for perquisites and Form 12BB to Form 124 for employee declarations.
What is in Part A and Part B?
Part A is downloaded from TRACES after the Q4 salary statement is processed, and its unique certificate number lets anyone verify it. Part B is prepared by the employer and both parts are signed, usually digitally.
| Part | Contents | Source |
|---|---|---|
| Part A | Employer and employee PAN and TAN, quarterly TDS summary, challan and receipt numbers of quarterly statements | Generated from TRACES; cannot be prepared manually |
| Part B | Salary breakup, exemptions, standard deduction, deductions claimed, tax regime and tax computation | Prepared by the employer from payroll |
| Annexure | Statement of perquisites, where applicable (now Form 123) | Employer |
Due date and late issue
The certificate must be issued by 15 June following the end of the tax year. Under the 1961 Act, failure to issue on time attracted a penalty of ₹100 for every day of default, limited to the tax deductible, and commentaries indicate the same position continues under the new law.
An employee who changes jobs during the year gets a certificate from each employer for the period worked there. Each employer reports only its own salary, and the employee combines them in the return, so declaring previous salary to the new employer avoids a large tax bill at year end.
What data does the employer need?
Most of the certificate comes from the Q4 salary statement, which must be filed and processed in time for Part A to be available by June. The employer needs these records to prepare Part B.
- Annual payroll register with salary components and allowances
- Employee's choice of tax regime; the new regime with a ₹75,000 standard deduction is the default
- Proof of investments and deductions declared under the old regime
- Previous employer salary and TDS, if declared
- Perquisite valuations and arrears, with relief workings where claimed
Common errors and consequences
Common errors include Part B figures that do not match the Q4 statement, wrong regime applied, missing exemptions that the employee actually declared, and issuing a self-made Part A instead of the TRACES version. These cause mismatches when the employee files the return and can lead to notices for the employee.
Employers should reconcile Part B with the Q4 statement before issuing and keep the TRACES download logs. Refogo's partner professionals can file salary TDS returns and generate certificates for a fixed fee.
Step by step
- 1File the Q4 salary statement
File the January-March statement by 31 May and ensure it is processed without defaults.
- 2Download Part A
Request and download Part A from TRACES with the TAN login.
- 3Prepare Part B
Generate Part B from payroll with salary, exemptions, deductions and tax computation.
- 4Sign the certificate
Sign both parts, usually with a digital signature.
- 5Issue by 15 June
Email or share the certificate with each employee by the due date.
Related services
Sources
- TaxGuru: mapping of Form 16 to Form 130
- Tax2win: old vs new form numbers (16, 12BA, 12BB)
- Pujara and Co: Form 130 and Form 131 issue dates
Written by the Refogo Editorial Team from the official sources above and checked on 2026-10-31. Laws, rates and due dates change, and authorities often extend deadlines, so confirm your own case with a qualified professional. This is general information, not legal or tax advice. Read our editorial policy or report an error to support@refogo.com.
Common questions
What is the new name of Form 16?
Form 130 under the Income-tax Rules 2026, starting with salary for tax year 2026-27.
Which form did employees get in June 2026?
Form 16, because it covered salary for FY 2025-26 under the 1961 Act.
Can an employer issue Form 130 without TRACES?
No. Part A must be generated from TRACES. Part B is prepared by the employer.
Is Form 130 needed if no tax was deducted?
The certificate is mandatory where tax was deducted. Many employers still issue a salary statement where no tax was deducted, which helps employees file returns.