Form 130 Replaces Form 16 from FY27: Understanding the Major Changes
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Form 16 Replaced by Form 130 from FY27: Key Changes Explained
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CNBC TV18•02-04-2026, 11:06
Form 16 Replaced by Form 130 from FY27: Key Changes Explained
•Form 16 will be replaced by Form 130 for tax year 2026–27, effective from April 1, 2026.
•Form 130 will be a system-generated TDS certificate from the TRACES portal, replacing manual issuance.
•The new form will have three parts: Part A (employer/employee details, TDS), Part B (salary breakup, deductions), and Part C (total income, tax payable, adjustments).
•Form 130 will cover salaried employees, pensioners, and specified senior citizens with interest income, expanding its scope beyond just salaried individuals.
•The change aims for improved data matching between employer filings, TRACES data, and ITRs, though tax liability calculation remains unchanged.
