Form 130 (old Form 16): Part A and Part B Decoded

Form 130 (old Form 16) is the salary TDS certificate, the most important document for a salaried person's ITR. Most employees receive it but don't know how to use it. Part A shows TDS deposited with the government. Part B is the salary breakup prepared by the employer. Errors in Form 130 (old Form 16) cause ITR mismatches and demands.

Form 130 (old Form 16) Part A, what to check: (1) Employer TAN must match what's in your Form 168 (old Form 26AS). (2) Your PAN must be correct. (3) TDS amount quarter-wise must match your Form 168 (old Form 26AS) and AIS. (4) "Amount paid / credited" = your gross salary for each quarter. (5) If employer changed TAN mid-year (company restructuring): multiple Part As may exist. Form 130 (old Form 16) Part B, the salary breakup: Shows: Basic salary, HRA, special allowance, LTA, bonus, perquisites. Deductions: Sec 123, Income-tax Act 2025 (old Sec 80C) investments, Sec 126 (old Sec 80D) health insurance, home loan interest (24b), standard deduction ₹75K. Taxable salary after deductions. TDS schedule with advance tax if any. This is what flows into your ITR Schedule S (Salary) and should match your AIS salary figure. Common Form 130 (old Form 16) errors: (1) Old investments not included in Part B (employer didn't update after you submitted Form 124 (old Form 12BB)). (2) HRA exemption computed wrong (wrong city classification).