Form 130 Under Income-Tax Act, 2025: The New TDS Certificate Replacing Form 16 for Salary, Pension & Senior Citizen Interest Income

The transition from the Income-tax Act, 1961 to the Income-tax Act, 2025 has introduced a comprehensive overhaul of TDS certificate formats. One of the most significant changes affecting salaried assessees, pensioners, and specified senior citizens is the introduction of Form 130, which officially replaces the long-standing Form 16 under the Income-tax Rules, 1962. Issued under Section 395(4)(b) of the Income-tax Act, 2025, this certificate is now the primary document evidencing tax deduction from salary, pension, and specified interest income.

This article provides a detailed breakdown of Form 130, its structure, legal basis, issuance requirements, and how it fits within the broader framework of new TDS/TCS certificates introduced under the Income-tax Rules, 2026.

Before diving into the specifics of Form 130, it is useful to understand where it sits within the new legislative architecture.

Particulars Old Framework New Framework
Form Name Form 16 (I.T. Rules, 1962) Form 130 (Income-tax Rules, 2026)
Applicable Section Section 203 (I.T. Act, 1961) Section 395(4)(b) (I.T. Act, 2025)
Applicable Rule Rule 31 (I.T. Rules, 1962) Rule 215(1) [Table: Sl. No. 1] (Income-tax Rules, 2026)
TDS Statement Filed In Form 24Q Form 138

This mapping confirms that Form 130 is the direct statutory successor to Form 16 and carries equivalent legal weight under the new regime.

What Is Form 130 and Why Does It Matter?

Form 130 is an annual TDS certificate mandatorily issued by an employer or a specified bank to a salaried employee, pensioner, or specified senior citizen. Its primary function is to provide a consolidated and verified record of:

  • Total income paid or credited to the assessee
  • Tax deducted at source from such income
  • Tax deposited with the Central Government on the assessee's behalf
  • Applicable deductions and exemptions considered while computing the deductible tax

Important: The certificate is not merely a procedural document — it serves as the legal instrument through which an assessee claims TDS credit while filing their return of income.

The scope of Form 130 extends beyond salary income. Under Section 402(39) of the Income-tax Act, 2025, it also covers interest income earned by specified senior citizens, where tax is deducted by a specified bank under Section 393(1) [Table: Sl. No. 8(iii)].

Structure of Form 130: A Three-Part Certificate

Form 130 is divided into three principal parts, each serving a distinct purpose. Understanding this structure is essential for both deductors (employers/specified banks) and assessees.

Part A — Identity and Basic Details

Part A captures the foundational information necessary to establish the relationship between the deductor and the deductee. It includes:

  • Name, address, and TAN of the employer or specified bank
  • Name, address, and PAN of the employee or specified senior citizen
  • Assessment Year and Tax Year details
  • Period of employment or period for which income is paid

This section essentially acts as the header of the certificate and ensures proper matching of TDS records between the deductor, deductee, and the Income Tax Department.

Part B — Summary of Payments and TDS

Part B provides a reconciliation summary of:

  • Total amount paid or credited to the assessee
  • Total tax deducted at source on such payment
  • Details of tax deposited into the Central Government account — either through challan or by book adjustment
  • A formal declaration by the deductor