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.
By Mr. Amit Joshi
Last reviewed
1 June 2026
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What changed in April 2026?
Short answer
From 1 April 2026 (Tax Year 2026-27 onwards), Form 16 is Form 130 under the new Income-tax Act, 2025. 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.
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.
| Element | Form 16 (until FY 2025-26) | Form 130 (Tax Year 2026-27 onwards) |
|---|---|---|
| Parts | A + B | A + B + C + two annexures |
| Part A | TDS summary (quarter-wise) | Identification details + employment-period field + TDS summary |
| Part B | Salary breakup, exemptions, deductions, taxable income | Same scope, restated for the new Tax Year terminology |
| Part C | Not present | Consolidated block: salary + exemptions + deductions + relief + final tax liability |
| Period-of-employment field | Implicit in dates | Explicit dd/mm/yyyy to dd/mm/yyyy entry |
| TDS statutory basis | Section 192, Income Tax Act 1961 | Section 392, Income-tax Act 2025 |
| Year reference | Assessment Year / Previous Year | Tax Year (unified concept) |
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 + 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.
References & related
Primary sources
- Income Tax Forms 2026 — Income Tax DepartmentOfficial forms reference for the Income Tax Rules, 2026.
- Objective and Scope of the New Income-tax Act, 2025 — Income Tax DepartmentDepartment-side overview of the new Act and Rules.
- Form 16 vs Form 130 — CAclubindiaField-level comparison of the two forms.
- Five big changes in Form 16 replaced by Form 130 — CAalleyStructural changes summary.
- Form 130 explained — Brut.mediaMainstream coverage of the transition.
Last reviewed: 1 June 2026