Generating Form 130 correctly is on you — here's the checklist that keeps it clean.
Last updated 21 August 2026
Payroll & HR
Your obligations as a deductor
File the quarterly TDS statement accurately — Form 130 can't be generated until this is done, and errors here become errors on the certificate
Generate Form 130 only through TRACES — offline versions aren't valid per the official rules
Issue it by 15 June of the year following the Tax Year — no extensions built into the rule itself
Digitally or physically sign the downloaded certificate before handing it to the employee
For employees who worked at more than one employer, issue Parts A and B for only your period of their employment (Rule 215(2))
Issuance is mandatory, not discretionary, once TDS has been deducted — there's no threshold below which it can be skipped
Common friction points
Where employers get stuck
Mid-year exits and joins. An employee who left in October still needs a certificate covering their period with you — don't skip partial-year employees.
Part C accuracy. Since Part C now pre-fills the employee's full salary-to-tax workings, errors in declared deductions (80C, HRA, etc.) surface directly on the certificate rather than staying buried in payroll records.
Senior citizen employees drawing pension elsewhere. If a retiree's pension is separately handled by a bank under the specified senior citizen provision, that's a different Annexure (II) issued by the bank — not something your payroll team generates.
Payroll team unsure about compliance?
AKMO reviews your Form 130 process before deadline crunch.
A quick check now is cheaper than a correction cycle after employees start asking questions.