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A very big and important change related to tax filing has come to light for salaried people. With the beginning of the new financial year, the government has geared up to make the income tax system more transparent and digital. Till now, there are many ways to save tax and file ITR. Form 16 Was considered the biggest Aadhaar, now the government is going to close it forever. In its place there is now a new, more organized and completely digital Form 130 is bringing.
After this new change, tax related information will be more clear and accurate than before, which will curb tax evasion and make it easier for honest taxpayers to file returns. Let us understand in detail what this new Form 130 is and how it is going to affect your pocket and ITR.
After all, what is the new Form 130?
In simple words, Form 130, like the old form, is one of your TDS (Tax Deducted at Source) Certificate Which will be issued by companies or employers to their employees. This is a sure government proof that the tax deducted from your salary or pension has been safely deposited by the company in the government treasury.
However, the new form will be more advanced and detailed than the old form. In this, the scope of manual entry has been eliminated and the entire focus has been placed on correct matching of data generated from the system.
New structure of Form 130: Information will be divided into three parts
The new form has been divided into three different parts to make it more organized than before. You can easily understand this from the table given below:
When will the new form be available? Note the timeline
It will take some time for this new form to be fully implemented, so you don’t need to panic right away:
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For FY 2025-26: Form 16 will continue to be issued under the old system and companies will hand it over to the employees by June 2026 this year.
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For FY 2026-27: The new rule will become completely mandatory from this tax year. After this, for the first time a new Form 130 will be issued, which the companies will have to submit. Till 15th June 2027 Have to give to your employees.
Not only employed people, these people will also get big benefits
This new change is not limited only to those doing private or government jobs. By expanding the scope of the new form, it Pensioners and those Senior Citizens Also included are those whose main source of income is fixed deposit (FD) interest received from banks.
The biggest thing is that now no company or bank will be able to provide it by making it by hand or using local software. It is essentially done only by the Income Tax Department. TRACES Portal Can be generated online only through. This will be downloaded only when the company files its TDS return on time and gets it processed.
One mistake by the employer and your tax refund is stuck!
Since Form 130 will be auto-generated from a completely centralized digital system, the responsibility of the companies has now increased a lot. If your employer makes even a slight delay in TDS filing or fills any wrong information like PAN number, the system will block your Form 130. Due to this, you may not be able to get the form on time and you may miss the time to file your ITR or your refund may get stuck.
Is nothing going to change?
Despite the complete change in name, number and appearance of the form, some basic things will remain the same:
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The main objective of the form will remain the same, i.e. to give a complete and authentic account of the tax deducted on your earnings.
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With the arrival of this new form your There is no change in the tax slabs, rules of tax calculation or your total tax liability. The rules of the old and new tax system will continue to be the same.
Companies will have to update their payroll systems, HR policies and TDS software to adapt to this new system, for which the government is giving them enough time.
