Form 16 Becomes Form 130: What Salaried Employees Get From 2027

Your salary TDS certificate is getting a new number. For salary paid from 1 April 2026 (tax year 2026-27), your employer will issue Form 130 instead of Form 16, and must do so by 15 June 2027. Form 16 still applies to salary for FY 2025-26, which was due by 15 June 2026.

Key facts

Why Form 16 is being renamed

The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. New rules, the Income-tax Rules, 2026, came with it and renumbered almost every form. The e-Filing portal says the new Act does not change the policy on tax deduction; it restates it.

Salary TDS, which sat in section 192 of the old Act, is now in section 392 of the new Act. The certificate for that deduction is issued under section 395, and Rule 215 prescribes its format as Form 130. The Income Tax Department’s form page describes Form 130 as the certificate for tax deducted on salary under section 392, or on pension.

Our explainer on what changed under the Income-tax Act 2025 covers the wider switch, and the old vs new section numbers table lists the renumbered sections.

Which year gets Form 16 and which gets Form 130

The deciding factor is when your salary was paid or credited. The e-Filing portal’s tax payment FAQ says any sum paid or credited on or before 31 March 2026 is governed by the 1961 Act, and anything paid from 1 April 2026 falls under the 2025 Act.

• FY 2025-26 (April 2025 to March 2026): TDS was deducted under the old Act, so the certificate is Form 16. It was due by 15 June 2026, and you used it for the return filed in 2026.
• Tax year 2026-27 (April 2026 to March 2027): TDS is deducted under section 392 of the new Act, so the certificate is Form 130. The first one is due by 15 June 2027.

So the TDS on the salary you receive now is already under the new Act, but you will not see a Form 130 until 2027.

What Form 130 contains

Form 130 has three parts. Form 16 had two. The department’s Form 130 FAQ and SCC Online’s comparison describe them as follows:

The form also covers pensioners. For specified senior citizens aged 75 or more, the bank that deducts the tax issues it, according to CAclubindia.

If you change jobs during the year, each employer issues its own certificate for the months you worked there, according to SCC Online.

Due date for employers

The department’s FAQ says Form 130 must be issued by 15 June of the financial year immediately following the tax year in which the salary was paid and tax deducted. For tax year 2026-27, that is 15 June 2027.

The employer must first file the quarterly TDS return, now Form 138 (earlier Form 24Q). It then downloads Form 130 from the TRACES portal and gives it to you, signed digitally or by hand. SCC Online notes that a certificate prepared any other way is not a valid Form 130. You cannot download it yourself; ask your payroll team if it has not arrived.

Using Form 130 to file your return

You will use Form 130 for the first return filed under the new Act, for tax year 2026-27, in 2027. Returns are filed under section 263 of the 2025 Act.

Cross-check it against two things:

• Form 168: the e-Filing portal says Form 168 replaces the Annual Information Statement from tax year 2026-27. Check that the TDS on your Form 130 matches the TDS shown there.
• Your salary slips: the gross salary in Part C should match the total of your monthly slips.

For FY 2025-26 returns, keep using Form 16 with Form 26AS and AIS. Our page on Form 16, 26AS, AIS and TIS explains how those fit together for years under the old Act.

What to check when you receive it

1. Check your name and PAN in Part A. A wrong PAN means the TDS will not reach your tax credit statement.
2. Check the employer’s name and TAN, and the period of employment.
3. Match the TDS in Part B with the TDS shown in Form 168.
4. Match the gross salary in Part C with your salary slips.
5. Check that the exemptions and deductions in Part C match the proofs you gave your employer.
6. If you had two employers, collect a certificate from each and add up the salary and TDS.
7. Report any mismatch to your employer, who must correct the TDS return before a revised certificate can be issued.

You can estimate what should be left after tax with the take-home salary calculator. If your employer’s figures and yours still differ after correction, a chartered accountant can help you decide what to report.

Frequently asked questions

What is Form 130 in income tax?

Form 130 is the annual certificate of tax deducted at source on salary or pension under the Income-tax Act, 2025. It replaces Form 16 from tax year 2026-27.

Form 16 kya hota hai?

Form 16 is the TDS certificate your employer gives you for salary paid up to 31 March 2026. It shows your salary, deductions and the tax deducted and deposited for you.

Will I get Form 16 or Form 130 for FY 2025-26?

Form 16. Salary paid up to 31 March 2026 is governed by the 1961 Act, and that certificate was due by 15 June 2026.

When will I get my first Form 130?

By 15 June 2027, for salary paid between April 2026 and March 2027.

Can I download Form 130 myself?

No. Your employer downloads it from TRACES and gives it to you. You can check the TDS credited to you in your tax credit statement on the e-Filing portal.

Is Form 130 needed to file my return?

You do not upload it, but you need its figures to fill in salary, deductions and TDS correctly and to cross-check Form 168.

What if I worked for two employers in 2026-27?

Each employer issues a separate certificate for the period you worked there. Report the combined salary and TDS in your return.

Sources

• Form No. 130 – Frequently Asked Questions — Income Tax Department (checked 16 Sep 2026)
• Form No. 130 — Income Tax Department (checked 16 Sep 2026)
• Tax Payments FAQ under the Income Tax Act 2025 — Income Tax Department e-Filing portal (checked 16 Sep 2026)
• Objective and scope of the new Act — Income Tax Department e-Filing portal (checked 16 Sep 2026)
• Income Tax Returns under the Income Tax Act 2025 — Income Tax Department e-Filing portal (checked 16 Sep 2026)
• Form navigator (old to new form numbers) — Income Tax Department e-Filing portal (checked 16 Sep 2026)
• Form 16 to Form 130: what has changed — SCC Online (checked 16 Sep 2026)
• Form 130 replaces Form 16 — CAclubindia (checked 16 Sep 2026)