The majority taxpayers believe that the procedure is completed after they submit their ITR through the portal. However, the return is only considered valid if it is e-verified within 30 days of the filing date. However, if you neglect or postpone verification, your return may be considered invalid, and you might face fines, delayed refunds, or even a notice from the Income Tax Department. You can stay out of trouble by being aware of the 30-day rule and its consequences.

Why E-Verification Is Required and How It Works

E-verification confirms that the information you submitted in your income tax return (ITR) is valid and that you have given your approval to it. If this step is not completed, the Income Tax Department may reject your return as legally filed. The department provides several options for carrying out the verification:

• Aadhaar OTP: The most popular approach is Aadhaar OTP. An OTP is sent to your registered phone number if your PAN is connected to Aadhaar.
• Internet Banking EVC: You can generate an Electronic Verification Code through your bank’s net banking page.
• Digital Signature Certificate (DSC): Companies, professionals, and taxpayers who already possess a Digital Signature Certificate (DSC) are the most common users.
• Demat Account EVC: To verify if your Demat account is linked, use CDSL or NSDL.
• ITR-V by Post: If online methods are unsuccessful, you have 30 days to send a signed physical copy of the ITR-V to the Centralised Processing Center (CPC) in Bengaluru.

The window has been reduced from 120 days to just 30 days for taxpayers to verify. This change increases the importance of timely verification.

What Happens If You Verify After 30 Days?

The filing date has been changed, but the return is still accepted if you verify your ITR after the 30-day period. The department uses the verification date as your actual filing date rather than the original submission date. This change may lead to a number of common issues:

• Late Filing Fee: You may be required to pay a late fee under Section 234F if your initial filing was made prior to the July 31 deadline but verification takes place after 30 days. If your income is less than ₹5 lakh, the cost is ₹1,000; if it exceeds, it is ₹5,000.
• Interest on Unpaid Tax: Section 234A adds interest from the due date until the verification date if you are owing tax and failed to pay it by the initial due date.
• Delayed Refunds: The refund processing will start only after verification. Your refund will be delayed, possibly by months, if the verification is delayed.
• Loss of Carry-Forward Benefits: You lose the option to carry forward business or capital losses (except from house property losses) if verification is made after the belated deadline of December 31.

For instance, the department will use September 5, 2026, as your filing date if you filed your ITR on July 28, 2026, but confirmed it on September 5, 2026. You lose the advantage of timely filing if this date is after July 31.

What Happens If You Completely Forget Verification?

Your ITR will be considered invalid if you do not verify it at all. You seem to have never filed. Penalties, interest on unpaid taxes, and notices for non-filing could arise from this. Under the Income Tax Act of 2025, the department may even start scrutiny or demand proceedings in certain circumstances.

Conclusion

E-verification is an important step. It is the last and required step in filing an ITR. A timely filed return may turn into a late one and incur fees, interest, and delays if the verification is not completed within 30 days. After filing your ITR, always check it right away. For quick validation, use Aadhaar OTP or Net Banking EVC. Send the ITR-V via speed post and save the tracking receipt if you face technical issues.You can avoid major problems later by taking a little step today.

How TaxAcumen Can Help

Navigating e-verification timelines and compliance rules under the Income Tax Act, 2025, doesn’t have to be overwhelming. At TaxAcumen, our experts ensure your returns are correctly filed, verified, and aligned with current regulations. Get in touch today to secure your financial standing.

Anyone who has ever filed an income tax return knows the small fear of a mismatch notice. After claiming a TDS credit, the department’s records show an error, and all of a sudden you’re chasing a bank or employer for a fix that should have been discovered weeks before. Form 168, which has replaced the previous Annual Information Statement under the Income Tax Act, 2025, is the document that helps identify this before it becomes a notice as of April 1st, 2026.

What Form 168 Actually Is

Form 168 is prescribed under Rule 245 of the Income Tax Rules, 2026, and uploaded under Section 510 of the new Act. It’s an auto-generated statement sitting in your registered e-filing account, pulling together TDS and TCS entries, specified financial transactions, tax payments, refunds, demands, and details of pending or completed proceedings. You don’t prepare or file it yourself; the department generates it based on what employers, banks, and other reporting entities submit against your PAN.

For anyone used to the older AIS, the shift is largely one of name and legal basis rather than function. AIS continues for periods governed by the 1961 Act, up to Assessment Year 2026-27, while Form 168 takes over from Tax Year 2026-27 onwards. TDS deducted in March 2026 still shows up in the older AIS. Anything deducted from April 2026 flows into Form 168 instead.

How to Reconcile TDS Entries

Reconciliation really comes down to comparing what Form 168 shows against what you already know from your own paperwork. A few practical steps make this easier:

• Pull every TDS or TCS certificate you’ve received during the year, whether from an employer, a bank, a tenant, or a property buyer.
• Match each certificate’s deducted amount and deposit date against the corresponding entry in Form 168.
• Check that the PAN, the Tax Year, and the nature of payment listed in Form 168 line up correctly with your own records
• Flag any TDS you know was deducted but doesn’t appear in the statement yet, since reporting entities upload information within 90 days of receiving it, not instantly.

A gap here often points to a delay on the deductor’s side rather than an error on your part, but it still needs chasing before you file your return, since an unreflected credit simply can’t be claimed.

What to Do When Something Doesn’t Match

If an entry looks wrong, the fix has to happen at the source. Contacting the employer, bank, or other deductor and asking them to correct their original TDS statement is the only way the figure in Form 168 actually changes. Typing a different number directly into your return doesn’t correct the underlying record, and it can create exactly the kind of mismatch that draws a notice later. Keep your certificates and bank statements on hand while this gets sorted, since you’ll likely need to show them to the deductor or, if it comes to it, to the department.

Conclusion

Form 168 provides you with a single spot to verify whether the TDS you anticipate matches what the department has on file; nevertheless, it is best used as a starting point for verification rather than a definitive response. By going over your certificates line by line, identifying any gaps early, and sending revisions back to the source before submitting, you can transform what could have been a stressful notice later into a routine check now.

Paying TDS on time has always been part of running a compliant business, but the process changed significantly from 1st April 2026. With the Income Tax Act, 2025, now in force, the income tax portal introduced a new challan system, complete with a fresh Act selection screen, new challan forms, and revised steps. If you’re still following the old routine, you might get stuck or generate a challan under the wrong act. This guide explains how to properly create a TDS challan under the new system.

Before You Start

Make sure you have the following ready before logging in:

• Your TAN and portal login credentials
• The deductee’s PAN details
• The exact TDS amount, along with any interest or late fee, if applicable
• A stable internet connection and an updated browser

Logging in with your TAN is recommended over the login-free “Quick Links” route, since it keeps a proper record of your payment history on the portal.

Steps to Generate the Challan

Once you’re ready, follow these steps on the income tax e-filing portal:

1. Log in using your TAN and password, then go to the Dashboard.
2. Click on e-File, then select e-Pay Tax. This takes you to the Act Selection screen.
3. Choose the applicable act. Select the Income Tax Act, 2025, for any transaction where TDS was deducted or credited on or after 1st April 2026. If the deduction relates to March 2026 or earlier, select Income Tax Act, 1961, instead, and use the older challan form.
4. Click Continue, then select New Payment on the e-Pay Tax page to start a fresh challan.
5. Pick the correct tax year. For transactions from April 2026 onwards, this will be Tax Year 2026-27.
6. Click Proceed on the Pay TDS/TCS tile. You’ll then reach the Select Deductee Type screen, where you choose the relevant major head and the deductee’s residential status.
7. Select the applicable section (392, 393, or 394) and the specific payment code that matches your transaction, along with the TDS rate.
8. Enter the deductee’s PAN, the payment amount, the TDS amount, and any interest or late fee that applies.
9. Choose your payment method, such as net banking, RTGS or NEFT, a debit card, or UPI, and complete the transaction.

After Payment

Once the payment goes through, a Challan Reference Number gets generated, and you can download the receipt right away. This receipt carries the BSR code and challan serial number, both of which you’ll need later when filing your quarterly TDS return. It’s a good habit to check your Payment History tab periodically to confirm the challan reflects correctly, and to verify the deductee’s PAN status beforehand, since an inoperative PAN attracts a higher TDS rate.

Keep in mind that mixing old-Act and new-Act transactions on a single challan won’t work. If you have payments falling under both periods, generate separate challans for each.

Conclusion

Generating a TDS challan under the new system isn’t complicated once you know where the Act selection screen sits and which payment code applies to your transaction. Taking a few extra minutes to pick the right Act, Tax Year, and section keeps your challan valid and your quarterly return free of errors. As more businesses get used to this routine, it will start to feel just as familiar as the old process once did.

A tenant paying rent above a certain threshold has always carried one extra responsibility beyond just paying the landlord on time. They had to deduct tax at source, deposit it with the government, and hand over a certificate proving it. That certificate used to be Form 16C. Since 1st April 2026, under the Income Tax Act, 2025, it is known as Form 132.

What Form 132 Actually Replaces

Form 132 isn’t a straight swap for Form 16C alone. It’s a consolidated certificate issued under Section 395(4) of the Income Tax Act, 2025, merging four older certificates into one, Form 16B for property transactions, Form 16C for rent, Form 16D for contractor and professional payments, and Form 16E for virtual digital asset transfers. A tenant issuing this certificate now uses the same form number a property buyer or a crypto trader would use, just for a different schedule of the corresponding filing.

For rent, the certificate ties back to Schedule A of Form 141, the challan-cum-statement that also replaced the older Form 26QC. The tenant deducts TDS, files Form 141 under Schedule A, and once that filing is processed, Form 132 gets generated to hand over to the landlord.

Who Needs to Issue It and When

The obligation applies to individuals and HUFs not liable to a tax audit, paying monthly rent above Rs 50,000 to a resident landlord. Two things are worth flagging here, since they haven’t changed even though the paperwork has:

• The TDS rate on this rent is 2 percent, a figure that came down from 5 percent back in October 2024, and it carries forward unchanged into the new Act.
• If the landlord doesn’t share their PAN, the deduction rate jumps to 20 percent instead.

Once TDS is deducted and deposited through Form 141, Form 132 must be issued within 15 days from the due date of that filing. This certificate can only be generated through the TRACES portal, so a document handed over outside that system isn’t considered valid proof.

What This Means in Practice

A tenant paying Rs 60,000 a month in rent still deducts 2 percent of the annual rent, deposits it through Form 141, and then generates Form 132 to give the landlord. The landlord uses this certificate to claim credit for the tax already deducted when filing their own return. If anything on the certificate needs correcting, the tenant has to file a revised statement first, and only then can an updated Form 132 be generated, there’s no separate correction process for the certificate on its own.

Missing the deadline to issue this certificate still carries a penalty, Rs 200 for every day of delay under the provision that replaced the older Section 234E framework. This makes timely filing just as important now as it was under the old system, even though the form name has changed.

Conclusion

Form 132 folds what used to be four separate certificates into one, which genuinely simplifies things for anyone dealing with property, rent, contractor payments, or crypto transactions across different years. For tenants specifically, the deduction rate, the threshold, and the underlying obligation remain exactly as before; only the certificate’s name and its route through Form 141 have shifted. Getting comfortable with this new pairing, one filing followed by one certificate, is really all that’s needed to stay compliant going forward.

For years, a mismatched PAN or a wrongly entered challan number in a TDS return wasn’t something deductors lost sleep over. There was always time to go back and fix it, sometimes years later. That comfort disappeared on 1st April 2026. Under the Income Tax Act, 2025, correction statements for TDS and TCS returns can now only be filed within two years from the end of the tax year in which the original statement was due. What used to be a six-year window has shrunk considerably, and understanding exactly how this works matters for anyone still holding onto old, uncorrected filings.

Why the Window Got Shorter

The earlier system let deductors revise a TDS return almost indefinitely, and in practice, corrections often came in two, three, or even five years after the original filing. This created its own set of problems, unresolved mismatches lingering for years, deductees stuck without proper credit, and a backlog that made audits harder to conduct cleanly. Section 397(3)(f) of the new Act addresses this by setting a firm two-year cutoff, counted from the end of the tax year in which the original statement was due.

The change isn’t just a policy preference sitting in guidance notes, it’s now written directly into law, replacing the earlier six-year practice that existed under the 1961 Act.

How This Affects Older Returns

The transition carries a real deadline that deductors needed to act on before 31st March 2026. Correction statements for the following periods were only accepted up to that date:

• Q4 of FY 2018-19
• All quarters of FY 2019-20 through FY 2022-23
• Q1 to Q3 of FY 2023-24

From 1st April 2026 onwards, none of these can be corrected anymore. They’re considered time-barred, and TRACES simply won’t process a correction request for them, no matter how small or genuine the error.

The rule moves forward on a rolling basis. During the period from April 2026 to March 2027, corrections are allowed only from Q4 of FY 2023-24 onwards. Once April 2027 arrives, the earliest year eligible for correction shifts again, to Q4 of FY 2024-25. Each passing year quietly closes the door on one more year’s worth of filings.

What Happens If a Correction Is Missed

Letting the two-year window lapse isn’t a minor inconvenience. A few consequences follow directly:

• Deductees may be stuck with unresolved mismatches, which can delay or block their tax credit
• Penalties ranging from Rs 10,000 to Rs 1,00,000 can apply, depending on how serious the underlying default is
• Uncorrected statements increase exposure during tax audits, since there’s no longer a route to fix them later

None of this is retroactively fixable once the window closes, which is precisely the point of the change. The earlier flexibility is gone, and accuracy now needs to happen closer to the time of filing rather than being patched up years down the line.

Conclusion

Instead of depending on an uncontrolled safety net, the two-year correction window encourages TDS compliance to do things right the first time. Deductors who are waiting on old, unfixed mistakes from previous years have already missed the opportunity to correct a number of them, and the ones that are still fixable will close on a fixed annual cycle. The only practical method to stay ahead of this transition is to include a routine reconciliation and check PANs, challans and deductee details long before the two-year deadline.

Anyone who has bought property, paid rent above a certain amount, hired a contractor without a TAN, or sold a virtual digital asset knows how scattered TDS compliance used to be. Four forms, 26QB, 26QC, 26QD, and 26QE, each handled a different transaction. From 1st April 2026, the Income Tax Act, 2025 replaced all four with a single form, Form 141.

What Form 141 Does

Form 141 is a challan-cum-statement, combining tax payment and reporting into one step. It’s filed under Section 393(1) of the Income Tax Act, 2025, and is entirely PAN-based, so deductors don’t need a TAN to file it. This suits its audience well, since it’s mainly meant for individuals and HUFs not otherwise required to hold a TAN.

Filers now select the schedule matching their transaction, instead of choosing between four different forms:

• Schedule A, TDS on rent paid to a resident landlord, where monthly rent exceeds Rs 50,000
• Schedule B, TDS on purchasing immovable property from a resident seller, where the value exceeds Rs 50 lakh
• Schedule C, TDS on payments to contractors or professionals by individuals or HUFs not covered under regular TDS filing
• Schedule D, TDS on specified virtual digital asset transactions, such as crypto transfers

Each schedule replaces one of the earlier forms, but the underlying TDS rates and thresholds haven’t changed. This is purely a filing and structural reform.

How to File Form 141

Filing happens entirely online. The general path is to log in using your PAN, go to e-File, then e-Pay Tax, select Income Tax Act, 2025, choose New Payment, and pick Form 141. From there, select the relevant schedule and enter the deductor’s and deductee’s PAN, the transaction value, the date of payment or credit, and the TDS amount.

One useful feature is that a single filing can now cover multiple parties of the same status. If a property has more than one seller, or a rented property has more than one landlord, all of them can be reported in one filing with percentage-wise allocation, rather than filing separately for each pairing as the old system required.

The due date remains the same as before, thirty days from the end of the month in which TDS was deducted. A deduction made in April 2026 needs filing and payment by 31st May 2026. A single Form 141 can only cover deductees sharing the same month of deduction, if the month differs, separate filings are needed.

What Changed Beyond the Form Number

Along with the consolidation, a few related changes matter. The TDS certificate tenants used to issue after filing Form 26QC, earlier called Form 16C, is now called Form 132. Correction of a filed Form 141 is possible, though not through the regular e-filing portal correction flow used for other returns. The new form also includes prefilled details and validation checks meant to catch common errors, such as PAN mismatches, before submission.

Conclusion

Form 141 brings four previously disconnected filings under one roof, which should reduce the friction individuals and HUFs face when dealing with property, rent, contractors, or crypto-related TDS. The rates and thresholds for each transaction type stay the same, so the real change lies in a simpler filing path and fewer repeated submissions for transactions involving multiple parties. Getting familiar with the right schedule for your transaction is the main thing to get right under this new system.

Under the Income Tax Act of 2025, the new quarterly statement for tax deducted at source on non-salary payments is called Form 140. It is now the primary form required by Section 397(3)(b) for businesses and other deductors to report TDS on payments made to resident taxpayers.

The general concept is still recognisable. You still have to record who you paid, what you paid, the amount of tax you deducted, and how the tax was deposited. The form’s format and the deadlines for fixing any errors have changed.

What Form 140 Covers

Form 140 is used for TDS on various non salary payments made to resident taxpayers. It applies to a broad range of transactions:

• Interest other than interest on securities
• Payments to contractors and subcontractors
• Commission and broking
• Rent paid for land, buildings, plant, or machinery
• Professional fees and technical service fees
• Dividend payments
• Any other resident payment where TDS is required under the Act

The requirement to file Form 140 covers Companies, Partnership firms and LLPs, Government Departments, Banks, Trusts, and Individuals & HUFs who are liable to deduct TDS.

Each quarter, the deductor must file Form 140 to report all relevant non-salary payments and the TDS deducted on those payments.

The form collects basic details of the deductor, information about the challans used to deposit TDS, deductee-wise details for each transaction.

This is similar to the old Form 26Q, but the layout is more unified, and there are fewer separate annexures to handle.

Due dates and filing process

The quarterly due dates for Form 140 are the same as they were for Form 26Q:

• Quarter 1, April to June: due by 31 July
• Quarter 2, July to September: due by 31 October
• Quarter 3, October to December: due by 31 January
• Quarter 4, January to March: due by 31 May of the following year

There is an appropriate order to the filing process:

1. Compile all of the quarter’s non-salary payments that are subject to TDS.
2. Pay close attention to the deductee’s PAN data.
3. Verify that TDS has been timely deposited and deducted at the appropriate rate.
4. Form 140 should be prepared with:
   1. Deductive information
   2. Challan information, including the date of deposit, challan number, and BSR code
   3. Deductee-specific information, such as the kind of payment, amount, and TDS withheld
5. Run the file through the current File Validation Utility and correct any issues that are found.
6. Using an electronic verification code or digital signature, submit the verified statement via the e-filing portal.

The acknowledgement number should be securely saved upon submission. If there are any questions or if a correction statement needs to be submitted later, this number will be required.

Changes from Form 26Q

Although the core purpose of reporting non-salary TDS has not changed, Form 140 introduces some key differences:

• It now operates under Section 397(3)(b) of the Income Tax Act, 2025, instead of Section 200(3) of the earlier law.
• The structure has moved from multiple annexures to a single, standardised format, which makes data entry and review more straightforward.
• Validation checks in the File Validation Utility are stricter. This helps catch mistakes such as wrong PAN entries or incorrect challan references before filing.

Correction statements are still allowed. If an error is found after filing, the deductor can submit a correction statement. However, there is a clear time limit. TDS correction statement can be filed within six years from the end of the financial year in which the TDS statement is required to be furnished, applicable from 1 April 2025.

Once this period is over, the return usually cannot be changed further. Because of this, it is wise to reconcile TDS records, challan details, and deductee information regularly during the year instead of waiting until the last quarter.

Conclusion

Form 140 offers a simple and clear filing format while retaining the reporting functionality of Form 26Q. The change should be easy for deductors that update their systems, check PAN and challan details in advance of deadlines, and adhere to the well-known quarterly due dates.

However, careful and prompt submission is still crucial due to the more stringent validation and short rectification window. It is better to approach Form 140 compliance as a continuous process rather than a year-end duty because late filing or unresolved errors can continue to result in interest, penalties, and other financial consequences.

Over the past few months, payroll systems in India have been adjusted to a new quarterly TDS statement by employers. Form 138 under the Income Tax Act, 2025 has taken the place of Form 24Q, the return used for years to report tax deducted from employee pay, as of April 1st, 2026. The form’s number, underlying section, and a few procedural specifics have changed, but its intent has remained the same. What payroll teams and employers should know about this change is as follows.

What Form 138 Is Used For

Form 138 is a quarterly statement filed by any employer, whether a company, firm, government body, or individual, who deducts tax from employees’ salaries under Section 392 of the Income Tax Act, 2025. It also covers specified banks that deduct tax on pension and interest income paid to specified senior citizens. This second use is new territory that Form 24Q didn’t formally carry, since senior citizen pension and interest reporting now sit within the same form.

Form 138 is filed electronically through the Income Tax e-Filing portal using the prescribed TDS return preparation and validation utilities. After successful validation, the accepted statement is transmitted to TRACES for further processing. Not every annexure is required every time. Annexure I goes with all four quarterly filings, while Annexure II and Annexure III, which cover the detailed annual salary or pension summary, get submitted only with the fourth quarter statement. This annual data eventually feeds into Form 130, the certificate that has replaced Form 16 for employees.

How the Due Dates and Filing Process Work

The quarterly due dates for Form 138 follow the same familiar pattern that Form 24Q used:

• Q1 (April to June): 31st July of the tax year
• Q2 (July to September): 31st October of the tax year
• Q3 (October to December): 31st January of the tax year
• Q4 (January to March): 31st May of the year following the tax year

Once submitted, Form 138 can’t be edited directly. If an error needs fixing, whether a wrong PAN, an incorrect amount, or any other detail, the employer must file a correction statement after the original return has been processed by CPC-TDS. This correction window runs for two years from the end of the tax year in which the statement was due. After successful filing, the portal issues an Acknowledgement Receipt Number as proof of submission.

Key Differences from Form 24Q

While the core reporting stays the same, a few things set Form 138 apart from its predecessor:

• The governing section has moved from Section 192 of the old Act to Section 392 of the Income Tax Act, 2025
• Terminology has shifted from “Assessment Year” and “Financial Year” to “Tax Year” throughout the form
• Specified senior citizen pension and interest reporting is now built into the same form, rather than handled separately
• Currency references now use the rupee symbol instead of “Rs.” across the document
• Late filing and non-compliance attract penalties under Sections 427, 461, and 465(2)(g) of the new Act, replacing the older penalty provisions

Timely and accurate filing remains just as important as before. It ensures employees receive proper TDS credit reflected in their records, and it protects employers from the legal exposure that comes with late or inaccurate returns.

Conclusion

Form 138 carries forward everything. Form 24Q was meant to do, reporting salary TDS accurately and on time, while adding a cleaner structure, updated terminology, and expanded coverage for senior citizen income. Employers who update their payroll processes now, align with the new section references, and keep the annexure requirements straight will find the quarterly filing routine just as manageable as it always was.

According to Indian law, a Hindu Undivided Family (HUF) is a distinct group made up of people who share a common ancestor, as well as their spouses and unmarried daughters. The Income Tax Act of 2025 treats it as a distinct taxable unit. An HUF is a helpful tool for tax planning and collective asset management since it can combine family assets and possess ancestral property.

Determining the Residential Status of HUF

The tax liability of an HUF depends on its residential status in a financial year. An HUF may be:

• Resident in India
• Non-resident in India

A resident HUF is further classified as the following:

• Resident and Ordinarily Resident (ROR)
• Resident but Not Ordinarily Resident (RNOR)

The HUF is ordinarily resident if the Karta (head of family) satisfies the residency criteria under Section 6 of the Act: having been a resident in India for at least two of the ten preceding years and staying in India for at least 730 days during the previous seven years. If either condition is unmet, the HUF is RNOR. A resident HUF is taxed on its global income; a non-resident HUF is taxed only on income that accrues, arises, or is received in India.

Calculation of Income

An HUF’s income is computed under four primary heads

1. Income from House Property
2. Profits and Gains from Business or Profession
3. Capital Gains
4. Income from Other Sources

The total income of the HUF is aggregated across these heads. Clubbing provisions under Section 151 (formerly 64) apply if a member transfers assets to the HUF without adequate consideration; such income may be taxed in the hands of the transferor rather than the HUF. Losses can be set off intra-head and inter-head as permitted, and unabsorbed losses may be carried forward.

Deductions and Regimes

After computing Gross Total Income (GTI), the HUF may claim allowable deductions (such as those under Section 123, formerly 80C) to arrive at total income, provided the HUF opts for the old tax regime. If the HUF remains in the default new tax regime under Section 202, most of these deductions are not available

Tax Rates Applicable to HUF (Tax Year 2025)

Old Tax Regime

Total Income (₹)	Tax Rate
Up to 2,50,000	Nil
2,50,001 – 5,00,000	5%
5,00,001 – 10,00,000	20%
Above 10,00,000	30%

New Tax Regime (Section 202 – Default)

Total Income (₹)	Tax Rate
Up to 4,00,000	Nil
4,00,001 – 8,00,000	5%
8,00,001 – 12,00,000	10%
12,00,001 – 16,00,000	15%
16,00,001 – 20,00,000	20%
20,00,001 – 24,00,000	25%
Above 24,00,000	30%

Important Note on Rebates:

Unlike individuals, an HUF is not eligible for the tax rebate under Section 87A. Even if the HUF income is below ₹12 lakh under the new regime, tax will be payable as per the slabs.

Surcharge, Cess, and AMT

If income surpasses ₹50 lakh, a surcharge is applied; under the current regime, the rate is limited at 25%. The overall tax plus surcharge is subject to a 4% health and education cess. An HUF is subject to the Alternative Minimum Tax under Section 206 if it claims certain investment-linked deductions and its regular tax is less than 18.5% of its adjusted total income.

Conclusion

For families, HUF taxes still provide a special “extra slab” benefit. Now that the Income Tax Act, 2025, is in effect, the family’s investment profile will determine whether they choose the deduction-based old regime or the default Section 202 regime. Maintaining high legal compliance and maximising the tax outflow need careful preparation regarding the Karta’s residence and the type of asset transfers.

Every salaried employee looked forward to Form 16 at the beginning of the financial year for more than 60 years. It served as the foundation for each ITR file and verified the amount of tax that the employer had deducted and deposited. Form 130 will take its place under the Income Tax Act, 2025. Millions of salaried employees are affected by this change, so knowing when it applies and what it looks like may help avoid confusion when it does.

When Form 130 Is Really Important

It’s worth being precise here, since there’s often confusion about timing. Form 16 continues to apply for FY 2025-26, and employers must issue it by 15th June 2026, exactly as before. Form 130 comes into effect from Tax Year 2026-27, which runs from April 2026 to March 2027. The first Form 130 that employees receive will be issued by 15th June 2027, once this tax year closes. So salaried employees filing returns right now still work with Form 16, but TDS deducted from April 2026 onward is already being recorded under the new system that Form 130 will eventually reflect.

What Form 130 Looks Like

Form 130 is issued under Section 395(4)(b) of the Income Tax Act, 2025, and it serves the same core purpose as Form 16, certifying tax deducted from salary and deposited with the government. It also extends to pensioners and specified senior citizens who have authorised a bank to deduct tax on their interest income, a group Form 16 never fully covered.

Structurally, Form 130 has three parts instead of two:

• Part A carries employer and employee details, along with the employment period, a field that wasn’t explicitly required before.
• Part B summarises the income paid and TDS deducted, reconciled against the employer’s quarterly filings.
• Part C contains detailed annexures, covering salary computation, or pension and interest income for senior citizens

Like its predecessor, Form 130 can only be generated through the TRACES portal, and only after the employer has filed the corresponding quarterly TDS return, now called Form 138, which replaces the earlier Form 24Q. Any version issued outside TRACES isn’t considered valid.

What Employees Should Watch For

Even though Form 130 won’t arrive until mid-2027, a few practical points are worth keeping in mind as this transition unfolds:

• Confirm your employer is filing Form 138 correctly each quarter, since Form 130 depends entirely on this filing being accurate
• Watch for the new employment period field in Part A, especially if you changed jobs during the year
• Once issued, cross-check the TDS figures in Form 130 against Form 168, the new version of Form 26AS, sometimes called the Tax Passbook
• Any mismatch between the two documents should be resolved with the employer before filing the ITR, not after

Since the certificate is generated only after quarterly filings are processed, delays on the employer’s side can push back when you actually receive it, so it helps to raise queries early if your payroll team seems behind schedule.

Conclusion

Salaried employees still have one more filing season with the well-known Form 16 before the move fully takes effect, and Form 130 isn’t arriving overnight. The fundamental change, quarterly filings under Form 138, a wider reach that includes pensioners, and a more complex three-part structure that will influence how income and deductions are reported after Form 130 finally arrives in mid-2027 have already begun.