Skip to content
HRAreceipt.in

Tax Guide · 1 June 2026

Form 16 Is Now Form 130: What Changed in April 2026?

From 1 April 2026 (Tax Year 2026-27 onwards), Form 16 is Form 130 under the new Income-tax Act, 2025. Unlike the Form 26AS to Form 168 rename, Form 130 is a structural redesign: it adds a third part, a new Period-of-employment field, and moves the TDS reference from Section 192 to Section 392.

In this section

Answers

View all 97 articles →

What changed in April 2026 for Form 16 (now Form 130)?

Short answer

From 1 April 2026 (Tax Year 2026-27 onwards), Form 16 is Form 130 under the new Income-tax Act, 2025[2]. This is more than a renumbering. Form 130 adds a third part, a Period-of-employment field, and references Section 392 instead of Section 192. For the ITR you file by 31 July 2026 (AY 2026-27), you still use Form 16; Form 130 begins with FY 2026-27 income, filed in 2027.

Both forms coexist during the 2026/27 transition. Form 16 stays valid for FY 2025-26 (employer must issue by 15 June 2026). Form 130 covers Tax Year 2026-27 onward (employer must issue by 15 June 2027).

How is Form 130 structurally different from Form 16?

Short answer

Form 16 had two parts (A: TDS summary, B: salary breakup). Form 130 has three parts plus two annexures, with the new Part C carrying a consolidated tax-liability block.

ElementForm 16 (until FY 2025-26)Form 130 (Tax Year 2026-27 onwards)
PartsA + BA + B + C + two annexures
Part ATDS summary (quarter-wise)Identification details + employment-period field + TDS summary
Part BSalary breakup, exemptions, deductions, taxable incomeSame scope, restated for the new Tax Year terminology
Part CNot presentConsolidated block: salary + exemptions + deductions + relief + final tax liability
Period-of-employment fieldImplicit in datesExplicit dd/mm/yyyy to dd/mm/yyyy entry
TDS statutory basisSection 192, Income Tax Act 1961Section 392, Income-tax Act 2025
Year referenceAssessment Year / Previous YearTax Year (unified concept)

Form 16 vs Form 130 structural comparison. Source: Income Tax Forms 2026[1] + CAclubindia comparison[3].

Which year do I get Form 130 vs Form 16?

Short answer

Both forms coexist during the 2026/27 transition. The income period the form covers decides which form your employer issues.

  • Income earned 1 April 2025 to 31 March 2026 (FY 2025-26): employer issues Form 16 by 15 June 2026 under the old Income Tax Act, 1961 + Rules, 1962. You use it to file ITR for AY 2026-27.
  • Income earned 1 April 2026 to 31 March 2027 (Tax Year 2026-27): employer issues Form 130 by 15 June 2027 under the new Income-tax Act, 2025[2] + Rules, 2026. You use it to file ITR for Tax Year 2026-27.
  • During 2026/27 you will typically hold one of each: the Form 16 for the year that just ended, and a forthcoming Form 130 for the year that just started.

Do I do anything different at ITR-filing time?

Short answer

The reconciliation discipline is unchanged. Match TDS on your monthly salary slips against Form 130 Part A, then match Form 130 Part A against Form 168 (the renamed Form 26AS). Part C in Form 130 is a presentation change, not a new computation.

The procedural guide at Salary Slip vs Form 16 reconciliation still applies. Read Form 16 as Form 130 and Form 26AS as Form 168 for Tax Year 2026-27. The arithmetic stays the same; only the form numbers and one section reference changed.

Generate a salary slip that reconciles against Form 130

References

  1. 1.Income Tax Forms 2026 — Income Tax Department — Official forms reference for the Income Tax Rules, 2026.
  2. 2.Objective and Scope of the New Income-tax Act, 2025 — Income Tax Department — Department-side overview of the new Act and Rules.
  3. 3.Form 16 vs Form 130 — CAclubindia — Field-level comparison of the two forms.
  4. 4.Five big changes in Form 16 replaced by Form 130 — CAalley — Structural changes summary.
  5. 5.Form 130 explained — Brut.media — Mainstream coverage of the transition.

References & related

Primary sources

Related guides