The TDS Form 16 has been substituted by Form 130, as notified by the CBDT (Central Board of Direct Taxes), which serves as the ‘salary TDS certificate’. This format breaks down tax-exempt allowances in detail that are paid to employees and, in addition, includes all tax breaks claimed by taxpayers.
Salary TDS Certificate Notified Date & When It Came Into Effect?
The CBDT notified the new format for Form 130 (which replaces Form 16) through a notification dated 20th March 2026. This notification introduced the Income-tax Rules, 2026, which come into effect from 1st April 2026. So, the person who will issue Form 16 after the mentioned date will have to do it in the new format.
How is the New Format Different from the Earlier Format?
The new format also introduces PART C (Annexure-II) for specified senior citizens for tax deduction under 393(1)
How is the New Format Better than the Old One?
Let’s review the new form that replaces the old one:-
New Form 130
- More granular reporting, including:
- Regime selection (old vs new tax regime)
- Detailed exemptions & deductions
- Pre-filled alignment with ITR forms
- Better reconciliation with AIS/TIS
- If Form 130 is submitted, then the Bank becomes responsible (in compliance with section 194P) for:
- Computing total income
- Deducting TDS
- Filing Income Tax Return (in such cases)
- A senior citizen may not need to file an ITR
thank you