Form 130 (Earlier Form 16): Your Salary TDS Certificate
- The legal basis
- What each part shows
- Reading Part C line by line
- The companion forms
- Changing jobs: two certificates, one tax bill
- Common errors and what to do
- Year labels
- Where this fits
From tax year 2026-27, the certificate your employer gives you for tax deducted from your salary is Form No. 130 under the Income-tax Rules, 2026. It does the job Form 16 did under the old rules. Under rule 215 it must be issued by 15 June after the end of the tax year, which for tax year 2026-27 means by 15 June 2027. It has three parts. Part A identifies the employer and you. Part B shows the tax deducted and deposited each quarter. Part C sets out how your taxable salary and tax were worked out.
Knowing what each part should contain lets you catch mistakes before you file your return, not after a mismatch notice.
The legal basis
- Section 392(1) of the Income-tax Act, 2025 requires an employer to deduct tax from salary at the average rate on the employee’s estimated salary income for the year.
- Section 395(4) requires a certificate of tax deducted. Rule 215(1), Table Sl. No. 1, prescribes Form No. 130 for deductions under section 392 (other than section 392(7)), with a due date of 15 June of the financial year following the tax year.
- The same form is used by a specified bank that deducts tax from the pension and interest of a specified senior citizen under section 393(1) (Table: Sl. No. 8(iii)).
- Generation. The certificate is generated and downloaded from the portal specified by the income tax department (rule 215(1) and (7)), and may be digitally signed (rule 215(4)).
What each part shows
| Part | Contents | What to check |
|---|---|---|
| A | Employer’s name, address, PAN and TAN; your name, address and PAN; the tax year; your period with that employer | Your PAN is correct, and the period matches your joining and leaving dates |
| B | Quarter-wise amount paid, tax deducted and tax deposited, with TDS statement receipt numbers and challan (or book adjustment) details | Total tax deposited equals total deducted, and matches the TDS shown in your Annual Information Statement |
| C (Annexure) | The full salary computation: regime, gross salary, exemptions, deductions, other income you reported, tax, rebate, surcharge, cess and net tax | The regime shown, the exemptions and deductions allowed, and any income you declared to the employer |
Reading Part C line by line
Part C follows the structure of the 2025 Act:
- “Whether opting out of taxation under section 202(1)?” “No” means your employer applied the new regime, which is the default. “Yes” means you told your employer you want the old regime.
- Gross salary is split into salary under section 16, perquisites under section 17 and profits in lieu of salary under section 18. Salary from other employers that you reported appears separately.
- Exemptions under section 11 cover leave travel concession (Schedule III, Sl. No. 8), house rent allowance (Sl. No. 11) and other special allowances (Sl. Nos. 12 and 13). Under the new regime, travel concession and HRA should be nil.
- Deductions under section 19(1) include professional tax, the standard deduction (₹75,000 under the new regime, ₹50,000 under the old), and exempt parts of gratuity, commuted pension, retrenchment compensation, voluntary retirement compensation and leave encashment.
- Other income reported under section 392(4) is any income from other heads, or house property loss, that you declared to the employer.
- Chapter VIII deductions are listed by the new section numbers:
- section 123 (earlier 80C);
- section 124(3) (earlier 80CCD(1B)) and section 124(1) for the employer’s pension contribution;
- section 126 for health insurance premium;
- section 129 for education loan interest;
- section 133 for donations;
- section 153 for savings account interest;
- section 125 for Agnipath contributions.
- Tax computation: tax on total income, rebate under section 156, surcharge, 4% cess, relief under section 157 for arrears, and TDS or TCS you reported, ending in net tax payable.
The companion forms
| Form | Who gives it to whom | Purpose |
|---|---|---|
| Form No. 122 | You to your employer (optional) | Declares salary from other employers in the year, house property loss, other income and other TDS or TCS, so the employer can deduct the right tax (rule 204(1), section 392(4)) |
| Form No. 123 | Employer to you | Statement of perquisites and profits in lieu of salary where salary exceeds ₹1,50,000 (rule 204(2)); below that, the details go in Form No. 130 |
| Form No. 124 | You to your employer | Evidence of claims such as HRA, with the landlord’s PAN where rent exceeds ₹1,00,000 a year (rule 205) |
| Form No. 131 | Other deductors to you | TDS certificate for most non-salary payments, such as bank interest or professional fees |
Changing jobs: two certificates, one tax bill
Rule 215(2) says that if you worked for more than one employer in the year:
- each employer issues Parts A and B for the period you worked there;
- Part C can be issued by each employer, or only by the last employer, at your option.
The risk is that neither employer knows about the other’s salary.
Worked example. Ritu is on the new regime in tax year 2026-27. She earns ₹9,00,000 from employer A (April to September) and ₹10,00,000 from employer B (October to March). Suppose each employer, unaware of the other, computes her tax as if its salary were her only salary for the year:
| Employer A | Employer B | Correct position | |
|---|---|---|---|
| Salary considered | ₹9,00,000 | ₹10,00,000 | ₹19,00,000 |
| Less standard deduction | ₹75,000 | ₹75,000 | ₹75,000 (once) |
| Taxable | ₹8,25,000 | ₹9,25,000 | ₹18,25,000 |
| Slab tax | ₹22,500 | ₹32,500 | ₹1,65,000 |
| Rebate under section 156 | ₹22,500 | ₹32,500 | Nil (income above ₹12 lakh) |
| Tax deducted | Nil | Nil | ₹1,71,600 due with cess |
Illustrative: in practice employers estimate annual salary, so actual deductions may differ.
Ritu would face ₹1,71,600 of tax at filing time. Because her tax after TDS exceeds ₹10,000, she may also owe interest for not paying advance tax under sections 424 and 425, which the advance tax interest calculator can estimate. Giving employer B a Form No. 122 with employer A’s salary and TDS when she joined would have spread the deduction across her remaining salary.
Common errors and what to do
- TDS in Part B does not match your Annual Information Statement. Usually the employer’s quarterly TDS statement is late or has an error. Ask the employer to file a correction; see fixing a TDS mismatch.
- Wrong regime. Your return, not the certificate, decides the regime. If you are not a business taxpayer, you can choose the old regime when filing even if your employer applied the new one (section 202(4)(b)). Tax may then be refundable or payable.
- HRA or section 123 deductions missing. If you are on the old regime and did not submit Form No. 124 evidence in time, you can still claim eligible deductions in your return, keeping the proofs.
- PAN error. Tax deducted against a wrong PAN will not show in your account until the employer corrects the statement.
Year labels
This page describes certificates for tax year 2026-27 onwards, under the Income-tax Rules, 2026. Salary paid up to 31 March 2026 belongs to FY 2025-26 (AY 2026-27), governed by the Income-tax Act, 1961.
Where this fits
- Check the tax figure: income tax calculator
- HRA in Part C: HRA exemption for tax year 2026-27
- Regime choice: new regime slabs for tax year 2026-27
- If a mistake reaches your return: revised and updated returns
Sources. Income-tax Act, 2025, sections 16 to 19, 156, 202, 392 and 395, Gazette of India, 21 August 2025. Income-tax Rules, 2026, rules 204, 205 and 215 and Form Nos. 122, 123, 124, 130 and 131, notified 20 March 2026.