Form 131 of Income Tax Act: Applicability and Process

Introduction

Form 131 of Income Tax Act is a TDS certificate for tax deducted from specified income other than salary. The deductor issues it to the deductee as proof that tax was deducted and deposited with the Central Government. It also helps the deductee verify income and claim the related TDS credit while filing the Income Tax Return.

Mainly, Form 131 is prescribed through the Income-tax Rules, 2026, and not directly through the Income-tax Act, 2025. Rule 215(1), Table Serial No. 2 prescribes the form, while Section 395(4)(a) of the Income-tax Act, 2025 creates the obligation to issue the certificate. Form 131 prescribed under the Income-tax Rules, 2026 for a certificate required under Section 395(4)(a) of the Income-tax Act, 2025.

Form 131 corresponds to the earlier Form 16A. This blog explains the meaning, legal basis, applicability, contents, TRACES process, correction procedure and ITR relevance of Form 131 of Income Tax Act.

What Is Form 131 of Income Tax Act?

Form 131 of Income Tax Act is a certificate issued for applicable TDS on payments other than salary. It records the payment made or credited, the tax deducted, the applicable rate and the tax-deposit details.

The official Income Tax Department FAQ states that the certificate serves as proof that TDS was deducted and deposited on behalf of a deductee who earned income other than salary. It is intended to help the deductee claim TDS credit while filing the ITR.

Form 131 of Income Tax Act is different from a TDS statement. Form 140 or Form 144 is filed by the deductor as a quarterly statement. Form 131 is generated from the processed statement and then issued to the concerned deductee.

Legal Framework of Form 131 of Income Tax Act

Section 395(4)(a) of the Income-tax Act, 2025

Section 395(4)(a) requires every person deducting or collecting tax to issue a certificate to the deductee or collectee.

The certificate must state:

The amount of tax deducted or collected;
The rate at which tax was deducted or collected; and
Other particulars that may be prescribed.
This section creates the legal obligation to issue a certificate. However, it does not itself prescribe Form 131.

Rule 215(1) of the Income-tax Rules, 2026

Form 131 of Income Tax Act is prescribed through Rule 215(1), Table Serial No. 2 of the Income-tax Rules, 2026. Rule 215 connects the relevant TDS provisions with Form 131.

The rule also requires the certificate to be generated and downloaded from the web portal specified by the Director General of Income-tax (Systems) or an authorized person.

Therefore, the legally correct position is that Form 131 is a form prescribed under the Income-tax Rules, 2026, while its statutory authority comes from Section 395(4)(a) of the Income-tax Act, 2025.

Form 131 of Income Tax Act and Earlier Form 16A

The official Income Tax Department FAQ directly identifies Form 131 as the corresponding form for the earlier Form 16A.

Form 131 of Income Tax Act continues the basic purpose of Form 16A under the new framework. The form number and legal references have changed, but the certificate remains evidence of applicable TDS on non-salary payments.

Who Must Issue Form 131 of Income Tax Act?

Any person responsible for deducting tax from an applicable payment other than salary must issue Form 131 after deducting and depositing the tax. The deductor may be: a company, bank, an LLP or partnership firm, government department, business or professional entity or another person required to deduct TDS.

The responsibility arises from the applicable TDS provision and not merely from the legal status of the payer. Once tax is deducted and deposited for a transaction covered by Rule 215(1), issuing Form 131 of Income Tax Act becomes mandatory for the deductor.

Who Receives Form 131 of Income Tax Act?

The certificate is issued to the deductee whose payment or income was subjected to TDS. Depending on the transaction, the recipient may be a professional, consultant, contractor, landlord, commission agent, depositor, shareholder or another person receiving income other than salary.

Form 131 of Income Tax Act may also apply to a non-resident where tax is deducted from the payment, the transaction is reported in Form 144 and the deductee has a valid PAN.

Applicability of Form 131 of Income Tax Act

Rule 215(1), Table Serial No. 2 links Form 131 with deductions under: Section 392(7), Section 393(1), except the entries specifically assigned to Form 132, Section 393(2) and Section 393(3).

Accordingly, Form 131 of Income Tax Act may apply to different types of non-salary payments. Practical examples may include:

• Interest;
• Rent;
• Professional fees;
• Technical service fees;
• Contractor payments;
• Commission or brokerage;
• Dividend income; and
• Certain payments made to non-residents.

The deductor should not select the TDS certificate only by looking at the general description of the payment. The relevant provision of the Income-tax Act, 2025 and its corresponding entry under Rule 215 should also be checked.

Transactions Not Covered by Form 131 of Income Tax Act

Form 131 does not apply to every transaction on which TDS is deducted.

Payments Covered by Form 130

Form 130 applies to tax deduction or payment under Section 392, other than Section 392(7). It also applies to specified pension or interest income of a senior citizen under Section 393(1), Table Serial No. 8(iii).

Form 130 corresponds to the earlier Form 16 and is generally associated with salary and specified covered income.

Transactions Covered by Form 132

Form 132 applies to deductions under Section 393(1), Table Serial Nos.: 2(i), 3(i), 6(ii); and 8(vi). These specified transactions are reported through the challan-cum-statement in Form 141. Form 132 corresponds to the earlier Forms 16B, 16C, 16D and 16E.

Therefore, Form 131 of Income Tax Act should not be used where Rule 215 specifically requires Form 130 or Form 132.

Relationship Between Form 131 of Income Tax Act, Form 140 and Form 144

Form 131 cannot be generated merely because TDS was deducted. The relevant quarterly TDS statement must first be filed and processed.

Form 140:

Form 140 corresponds to the earlier Form 26Q. It is the quarterly TDS statement for applicable payments other than salary made to resident deductees.
The official guidance explains that Form 140 covers payments such as interest, commission, brokerage, professional fees, rent and other specified non-salary payments made to residents.

Form 144:

Form 144 corresponds to the earlier Form 27Q. It is the quarterly TDS statement for applicable payments other than salary made to non-residents, including non-resident individuals and foreign companies.

Generation of Form 131:

After Form 140 or Form 144 is processed, TRACES generates the certificate information. The deductor can then download Form 131 of Income Tax Act, sign it digitally or manually and issue it to the deductee.

A certificate prepared independently through another method is not treated as a legally valid Form 131.

Details Contained in Form 131 of Income Tax Act

The official Form 131 is divided into Part A and Part B.

Part A: Deductor and Deductee Details

Part A contains:

• Certificate number;
• Last updated date;
• Name and address of the deductor;
• PAN of the deductor;
• TAN of the deductor;
• Email address and contact number;
• Relevant tax year;Quarter of the tax year;
• Name and address of the deductee; and
• PAN of the deductee.

Part B: Payment and TDS Details

Part B contains:

• Nature of payment;
• Amount paid or credited;
• Date of payment or credit;
• Receipt number of the original quarterly TDS statement;
• Amount of tax deducted;
• Rate at which tax was deducted;
• Amount of tax deposited or adjusted;
• Book-adjustment details;
• Challan Identification Number;
• BSR code of the bank branch;
• Date of tax deposit;
• Challan serial number; and
• Declaration by the person responsible for deducting tax.

These particulars help the deductee confirm whether Form 131 of Income Tax Act correctly reflects the payment, deduction and tax-deposit information.

Conditions for a Valid Form 131 of Income Tax Act

A valid Form 131 requires the following conditions to be satisfied:

• The payment must fall under an applicable TDS provision.
• Tax must be deducted from the payment.
• The deducted amount must be deposited with the Central Government.
• Form 140 or Form 144 must be filed, as applicable.
• The TDS statement must be processed.
• The certificate must be generated and downloaded from TRACES.
• The deductor must sign the downloaded certificate.
• The signed certificate must be issued to the deductee.

These conditions link Form 131 of Income Tax Act with the processed TDS statement and the tax records maintained by the Income Tax Department.

How to Download Form 131 of Income Tax Act From TRACES

The official FAQ confirms that the deductor must download Form 131 from TRACES.

The general process is:

• Log in to TRACES using the registered TAN credentials.
• Open the relevant certificate download section.
• Select the request for the applicable TDS certificate.
• Choose the relevant tax year and quarter.
• Select Form 140 or Form 144, as applicable.
• Enter the deductee’s PAN or use the available bulk option.
• Complete the required validation.
• Submit the request.
• Check the requested-download section.
• Download the certificate file when it becomes available.
• Generate the certificate through the prescribed utility, where required.
• Sign and issue the certificate to the deductee.

A deductee cannot independently generate a legally valid Form 131 of Income Tax Act. The request, download, signing and issuance must be completed by the deductor.

Can Form 131 Be Issued Offline?

No. The official FAQ states that Form 131 must be downloaded from the TRACES website.

The deductor may sign the downloaded certificate digitally or manually. However, a certificate independently prepared through another process is not considered a legal or valid TDS certificate.

This requirement protects the authenticity of Form 131 of Income Tax Act because the certificate is generated from a processed TDS statement available with the Income Tax Department.

How to Verify Form 131 of Income Tax Act

After receiving the certificate, the deductee should verify:

• Name and PAN;
• Deductor’s name, PAN and TAN;
• Relevant tax year and quarter;
• Nature of payment;
• Amount paid or credited;
• Date of payment or credit;
• Applicable TDS rate;
• Tax deducted;
• Tax deposited or adjusted;
• Challan or book-adjustment details; and
• Signature of the deductor.

Form 131 of Income Tax Act should also be compared with the corresponding TDS credit reflected in Form 168 or AIS. This verification may help identify an incorrect PAN, missing credit, payment mismatch or incorrect TDS amount.

Form 131 and Form 168 Reconciliation

Form 168 is the Annual Information Statement prescribed under Rule 245 of the Income-tax Rules, 2026. It corresponds to the earlier Form 26AS.

Form 168 contains information relating to:

• TDS and TCS;
• Specified financial transactions;
• Payment of taxes;
• Tax demands and refunds; and
• Other information linked to the taxpayer’s PAN application.

Form 131 of Income Tax Act is issued by the deductor, while Form 168 is made available through the Income Tax Department’s system. The payment and TDS figures in both records should be compared before the taxpayer claims credit.

A difference may arise where the TDS statement is still being processed or where the deductor has reported incorrect information. The deductee should contact the deductor and seek correction before claiming unsupported TDS credit.

Use of Form 131 in ITR Filing

Form 131 of Income Tax Act helps the taxpayer:

• Report applicable non-salary income;
• Verify the gross payment made or credited;
• Identify the amount of TDS deducted;
• Reconcile the credit with Form 168 or AIS;
• Claim eligible TDS credit;
• Calculate the remaining tax payable; and
• Determine the expected tax refund.

The certificate is not required to be attached to the Income Tax Return. However, it should be preserved as supporting evidence for reconciliation, assessment or future tax proceedings.

How to Correct an Error in Form 131

Form 131 cannot be corrected independently.

If the certificate contains an incorrect PAN, payment amount, TDS rate or tax figure, the deductor must revise the underlying TDS statement in Form 140 or Form 144.

After the revised statement is processed, the deductor can download and issue a corrected Form 131 of Income Tax Act. The deductee should then compare the revised certificate with Form 168 or AIS before claiming TDS credit.

What If Form 131 Is Not Issued?

Where tax has been deducted and deposited but the certificate has not been issued, the deductee should contact the deductor in writing.

The deductee should also:

• Check whether TDS appears in Form 168 or AIS;
• Confirm that the correct PAN was reported;
• Preserve invoices, bank statements and payment advice;
• Ask the deductor to file or revise Form 140 or Form 144; and
• Request the certificate after the statement is processed.

Not receiving Form 131 of Income Tax Act does not remove the taxpayer’s responsibility to report the related income. The taxpayer should report the actual income even where it is not reflected in AIS, but TDS credit should be claimed after checking the available records.

Importance of Form 131 of Income Tax Act

Form 131 of Income Tax Act is important because it:

• Provides proof that TDS was deducted and deposited;
• Confirms the payment and tax details reported by the deductor;
• Supports the deductee’s claim for TDS credit;
• Helps reconcile Form 168 or AIS;
• Assists in preparing an accurate Income Tax Return;
• Helps identify missing or incorrect tax credit; and
• Provides supporting evidence for future tax verification.

Simplify Your Tax filing with Ebizfiling

Ebizfiling can assist taxpayers in reviewing Form 131 of Income Tax Act and reconciling it with Form 168 or Annual Information Statement (AIS).

Our team can help with:

• Checking payment and TDS details;
• Identifying missing or incorrectly reported credit;
• Reviewing taxable income;
• Calculating the tax liability;
• Selecting the applicable ITR form;
• Preparing and filing Income Tax Return; and
• Assisting with TDS mismatches or income-tax notices.

Professional support can be useful where the taxpayer receives certificates from multiple deductors or where the TDS certificate does not match the annual information available on the Income Tax Department’s system.

Conclusion

Form 131 of Income Tax Act is the TDS certificate corresponding to the earlier Form 16A. It applies to specified deductions from income other than salary and helps the deductee verify TDS and claim credit while filing the ITR.

For legal accuracy, Form 131 is prescribed through Rule 215(1), Table Serial No. 2 of the Income-tax Rules, 2026. Section 395(4)(a) of the Income-tax Act, 2025 provides the statutory obligation to issue the certificate.

Form 140 or Form 144 must be filed and processed before the certificate can be generated from TRACES. The deductee should verify Form 131 of Income Tax Act with Form 168 or AIS and request correction of the underlying TDS statement where a mismatch is identified.

Suggested Reads:

Form 168 of Income Tax Act

Frequently Asked Questions