India’s income tax framework is set to witness a major shift from April 1, 2026, with the rollout of the new Income-tax Rules 2026. Among the key changes is the introduction of Form 130, which will replace the current Form 16 issued to salaried employees.
The new form will act as a detailed TDS certificate, offering a clearer and more structured summary of salary income, deductions, and taxes deposited. It will also include additional details such as total taxable income and tax liabilities, making it more comprehensive than its predecessor.
Authorities aim to improve transparency by generating Form 130 digitally through the TRACES portal. This ensures that the data is consistent and reduces the possibility of manual errors. The updated system is also expected to make it easier for taxpayers to verify their financial details.
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