CBDT Proposes New Income Tax Form 130 to Bring Salary, Pension & Senior Citizen Interest TDS Under Single Reporting Certificate [Read Notification]

The Central Board of Direct Taxes (CBDT) has proposed a new Income Tax Form No. 130 with the objective of consolidating tax deducted at source (TDS) reporting for salary income, pension income, and interest income of specified senior citizens under a single certificate framework. This proposal forms part of the draft rules issued in connection with the Income Tax Act, 2025 and represents a structural change in the manner TDS certificates are issued and reported.

At present, TDS on salary, pension, and interest income is reported through different certificates and systems. The proposed Form 130 seeks to bring these streams together into one unified and detailed certificate, covering both deduction and deposit of tax, along with computation of taxable income in prescribed cases.

Form 130 is proposed as a certificate under section 395 of the Act. It applies to:

• salary paid to an employee under section 392, and
• pension or interest income paid to a specified senior citizen under section 393(1).

The form also aligns with the quarterly TDS reporting framework under section 397 and integrates with book adjustment and challan-based tax deposit systems.

The proposed form seeks to:

• replace multiple certificates with a single structured certificate,
• ensure stronger linkage between TDS deduction, deposit, and reporting,
• reduce mismatches between TDS certificates and TDS statements, and
• provide a complete tax computation record in cases where law requires the deductor to compute tax liability.

For employers and banks, Form 130 introduces a more detailed reporting obligation. Deductors must ensure accurate computation, correct linkage with challans or book adjustments, and proper reconciliation with quarterly TDS returns.

For employees and senior citizens, the form provides a single consolidated view of income, deductions, and tax deducted. This can reduce disputes, mismatches in Form 26AS or AIS, and issues during return filing.

For tax administration, the form strengthens audit trails and improves data integrity across systems.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates