TDS Certificates for Non-Salary Income Gets a New Identity For FY 2026-27

Overview

The Income Tax Act, 2025 has renamed the TDS certificate issued for non-salary income. Earlier, under Income Tax Rules 1962, taxpayers received Form 16A as proof of TDS on income such as interest, commission, rent, professional fees, dividend and contractual payments. Under the new Income Tax Rules 2026, this certificate has been redesignated as Form 131.

What is Form 131?

Form 131 is a quarterly TDS certificate issued for tax deducted on payments other than salary. It is provided by the person deducting tax (deductor) to the recipient of income (deductee) as evidence that tax has been deducted and deposited with the government. From Tax Year 2026-27, Form 131 takes the place of the earlier Form 16A under the Income-tax Act, 2025.

Key Details Form 131

Purpose of Form 131

The primary objective of Form 131 is to provide transparency in TDS compliance and help taxpayers claim the correct tax credit. The certificate acts as an official record of the tax deducted from various payments and deposited with the Income Tax Department.  

Some of the key purposes of Form 131 include:

• Providing proof of TDS deduction.
• Assisting taxpayers in claiming TDS credit while filing their income tax returns.
• Helping reconcile income and tax details.
• Reducing errors and mismatches in tax records.
• Ensuring proper compliance with TDS provisions. 

Applicability of Form 131

Form 131 is applicable where tax has been deducted on payments other than salary. It covers several categories of income that are subject to TDS under the Income-tax Act.

Common Payments Covered Under Form 131

• Interest Income 
• Rent Payments 
• Professional Fees 
• Commission and Brokerage 
• Contract Payments 
• Director's Fees 
• Other Specified Non-Salary Payments 

Information Contained in Form 131

Form 131 contains important details relating to both the deductor and deductee, along with particulars of the tax deducted.   The certificate generally includes:

• Name and PAN of the deductee. 
• Name and TAN of the deductor. 
• Nature of payment. 
• Amount paid or credited. 
• Rate at which TDS was deducted. 
• Amount of TDS deducted. 
• Challan and payment details. 
• Certificate number and reporting period. 

Due Dates for Issuing Form 131

The certificate must be issued on a quarterly basis after filing the corresponding TDS return.  

Also Read - Form 140 for reporting TDS on non-salary payments under the Income-tax Act, 2025

Form 131 and Form 16A: A Quick Comparison

Important Points to Remember

• Form 131 is applicable from Tax Year 2026-27 onwards. 
• It is issued only for non-salary payments on which TDS has been deducted. 
• The form helps taxpayers verify and claim TDS credits accurately. 
• Details mentioned in Form 131 should match the information available in Form 26AS and AIS. 
• Deductors should issue the certificate within the prescribed timelines to avoid compliance issues. 
• Taxpayers should retain the certificate for future reference and tax record maintenance. 

Conclusion

Form 131 is an important document for taxpayers receiving income other than salary. It serves as official proof of tax deduction and helps ensure that the correct TDS credit is reflected while filing income tax returns. Although it replaces Form 16A under the new Income-tax Act, 2025, its overall purpose remains the same—promoting transparency, accuracy, and smooth tax compliance for both deductors and deductees.

FAQs

1. What is Form 131?

Form 131 is a quarterly TDS certificate issued for non-salary income where tax has been deducted at source.

2. Who is required to issue Form 131?

Any deductor who deducts TDS on non-salary payments must issue Form 131 to the deductee.

3. Does Form 131 replace Form 16A?

Yes. Form 131 replaces Form 16A from Tax Year 2026-27 under the Income-tax Act, 2025.

4. Is Form 131 required for filing an income tax return?

While it is not attached to the return, it is useful for verifying TDS credits and ensuring accurate ITR filing.

5. How often is Form 131 issued?

Form 131 is issued quarterly after the filing of the relevant TDS return.

6. Why should taxpayers keep Form 131 safely?

It serves as documentary proof of TDS deduction and may be required for tax reconciliation and future reference.