PayEFlow · Income-tax Act 2025Payroll TDS under the Income-tax Act 2025.
The Income-tax Act 2025 replaces the 1961 Act from 1 April 2026, and the familiar payroll sections and forms have new numbers. Here's what maps to what — and how PayEFlow handles each one.
Sec 392 salary TDSForm 130 (old Form 16)Form 138 (old 24Q)Form 124 (old 12BB)
Old numbers → new numbers
The payroll sections and forms, side by side.
Section and form numbers as PayEFlow uses them, following the Income-tax Act 2025 and its rules.
| What it is | 1961 Act | 2025 Act | In PayEFlow |
|---|---|---|---|
| TDS on salary | Sec 192 | Sec 392 | Projected monthly TDS on every run — old vs new regime, rebate and its marginal relief, surcharge and cess. |
| Employee investment declaration | Form 12BB | Form 124 | Employees file declarations and upload proofs from self-service; HR verifies and finalises them. |
| Salary TDS certificate | Form 16 | Form 130 | Part B (the employer's working) generated as a PDF; Part A comes from TRACES. Employees download it themselves. |
| Quarterly salary TDS return | Form 24Q | Form 138 | Quarterly data exported as a CSV for your return-preparation utility. |
| TDS on consultants & contractors | Sec 194J / 194C | Sec 393 | TDS by nature of payment on consultant invoices, with a flag when a consultant is also on the payroll. |
| Non-salary TDS certificate | Form 16A | Form 131 | Generated as a PDF for each consultant. |
| Quarterly non-salary TDS return | Form 26Q | Form 140 | Quarterly data exported as a CSV. |
This page explains how PayEFlow works; it isn't tax advice. Check the latest CBDT notifications and rules before filing.
Salary TDS in PayEFlow
From declaration to certificate, in one flow.
TDS isn't a year-end exercise in PayEFlow — it's projected and deducted every month, and the paperwork builds up as you go.
- Compare the old and new regimes for an employee and record their choice.
- Projected monthly TDS across the tax year, with rebate and its marginal relief, surcharge and cess.
- Form 124 declarations and proofs from self-service, verified and finalised by HR.
- Income and TDS from a previous employer for people who join mid-year.
- Form 130 Part B for every employee, downloadable from their own login.
- Form 138 quarterly data, and Form 131 / Form 140 for consultants under Sec 393.
New Act, common questions
What replaced Section 192 for TDS on salary?+
Under the Income-tax Act 2025, TDS on salary is under Section 392. PayEFlow calculates salary TDS under Sec 392 on every payroll run.
Is Form 16 still called Form 16?+
Under the new numbering the salary TDS certificate is Form 130. PayEFlow generates Form 130 Part B; Part A continues to come from TRACES.
What is Form 124?+
Form 124 is the employee's declaration of investments and deductions to the employer — the new number for what was Form 12BB. In PayEFlow employees file it, with proofs, from their own login.
What happens to the 24Q quarterly return?+
The quarterly salary TDS return is Form 138 under the new numbering. PayEFlow exports the quarter's data as a CSV for your return-preparation utility.
Run payroll on the new numbering from day one.
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