TDS Certificate
Other than Salary
Everything you need to know about Form 132 — who issues it, who needs it, how to download it from TRACES, and how to use it correctly in your ITR filing.
FORM NO. 132
[See rule 215(1)[Table: Sl. No. 2]]
Certificate under section 395(4)
Certificate No.: _____________Last updated on: _____________
| Ack. No. | Date | Amount (₹) | Rate | TDS (₹) |
|---|---|---|---|---|
| _______ | dd/mm/yyyy | — | — | — |
Total: ₹ —
| BSR Code | CIN | Date | Challan No. | Amount |
|---|---|---|---|---|
| Auto-populated from TRACES | ||||
I, _____________ having PAN _____________ in the capacity of _____________ (designation) do hereby certify that a sum of ₹ _____________ [₹ _____________ (in words)] has been deducted and deposited to the credit of the Central Government…
Place: _______
Date: _______
Signature: _______
Download Form 132 — Step-by-Step
The legally valid, digitally signed Form 132 must be downloaded from the Government's TRACES portal.
If you have recently sold a house, received high-value rent, traded virtual digital assets, or been paid a large professional fee — there is one tax document you cannot afford to miss. That document is Form 132.
India's Income Tax Act 2025 introduced Form 132 as a consolidated TDS (Tax Deducted at Source) certificate covering all non-salary income categories. It replaces four older forms — 16B, 16C, 16D, and 16E — in a single, standardised format. Whether you are the person paying the tax (deductor) or receiving the income (deductee), this guide covers everything you need to know.
What is Form 132?
Form 132 is an official TDS certificate introduced under the Income Tax Act 2025. It serves as legally recognised proof that tax has been deducted at source on certain non-salary payments made to a resident individual, NRI, company, or any other person.
In simple terms: when you receive a large payment — say, from selling your property — the buyer is legally required to withhold a percentage of that payment as TDS and deposit it with the Government of India. Form 132 is the receipt that proves this happened. Without it, the Income Tax Department's data-matching systems will not credit the deducted tax to your account, which can mean extra tax demands or delayed refunds.
Why was Form 132 introduced?
Before the 2025 Act, there were separate forms for each transaction type: Form 16B for property, 16C for rent, 16D for professional fees, and 16E for other payments. This created confusion for both taxpayers and the tax administration. The 2025 Act consolidated all four into a single Form 132, making record-keeping simpler and enabling better digital reconciliation through the IT portal's AI-powered AIS (Annual Information Statement) system.
What does "Other than Salary" mean?
"Other than salary" simply means income that is not your regular monthly pay from an employer. It covers a wide range of qualifying income sources that still attract TDS obligations under Indian tax law.
Six transaction types covered by Form 132
Row 7 of Part A of the form requires the deductor to tick one of the following nature-of-transaction categories:
Arjun sells his land for ₹75 lakh. The buyer is required to deduct 1% TDS (₹75,000), deposit it with the Government using Form 141 challan, and then generate Form 132 from TRACES. Arjun receives this certificate and uses it when filing his ITR to claim credit for the ₹75,000 already paid as tax on his behalf.
Priya rents her commercial shop for ₹60,000 per month. When annual rent exceeds the threshold, the tenant must deduct 5% TDS on each monthly payment. Priya receives Form 132 from her tenant annually, showing the total TDS deducted on her rental income.
Kabir transfers his NFTs through a crypto exchange. The exchange deducts 1% TDS on the consideration received. Form 132 is later issued by the exchange showing the VDA transaction and TDS withheld. This must be reported in Kabir's ITR under the VDA schedule.
Dr. Sharma consults for a pharma company and receives ₹8 lakh as a consultancy fee. This is not a salary — it is a professional fee, so the company deducts 10% TDS, deposits it, and issues Dr. Sharma a Form 132. She reports this income under "Professional and business income" in her ITR.
A logistics contractor receives ₹40 lakh under a works contract from a company. The company deducts TDS at 2% and issues Form 132 to the contractor, who then claims this credit in their business income tax return.
Suresh, a real estate broker, earns ₹3 lakh as commission on a property deal. The paying party deducts 5% TDS if the threshold is crossed and issues Form 132. Suresh includes this in his ITR as professional income.
TDS rates by transaction type under Form 132
- Property sale (1%)
- High-value rent (5%)
- VDA transfer (1%)
- Technical fee (10%)
- Contract (2%)
- Commission (5%)
Who needs Form 132?
The deductor (payer)
If you are paying for property, high-value rent, professional services, digital asset transfers, or contract work, the obligation to deduct TDS and issue Form 132 falls on you. You must:
- Deduct the applicable TDS percentage at the time of payment
- Deposit the TDS with the Government using Form 141 (challan-cum-statement)
- Generate Form 132 from the TRACES portal and issue it to the payee within 15 days of filing the TDS return
Failure to issue Form 132 on time attracts penalties under the 2025 Act. Non-deduction of TDS is treated even more seriously — the deductor becomes personally liable for the tax amount, plus interest and penalties.
The deductee (recipient)
If you receive any of the above types of income and tax has been deducted before the money reaches you, you are the deductee. Always insist on receiving Form 132 from whoever paid you. Without it:
- The IT portal's automated system may not reflect the TDS credit in your AIS
- You may receive a tax demand for an amount already paid
- Your refund (if any) may be delayed or reduced
Why Form 132 is important
Over my 10 years of practice as a Chartered Accountant, I have seen many taxpayers lose legitimate refunds or receive incorrect tax demands simply because they did not hold the right TDS certificate. Here are the six core reasons Form 132 matters:
- Prevents double taxation: TDS is a prepayment of tax. If the IT portal does not see Form 132, it does not know the tax has already been paid — and it will demand it again.
- Required for AIS reconciliation: The Annual Information Statement pulls TDS data from TRACES. A missing Form 132 creates a mismatch that flags your return for scrutiny.
- Speeds up refunds: When TDS is over-deducted (common in property transactions), the refund process depends on the portal being able to verify the credit. Form 132 makes this instant.
- Protects against notices and audits: A complete set of TDS certificates is the strongest defence against an IT notice asking you to explain your tax credits.
- Essential for NRIs: Non-resident Indians selling property in India have higher TDS rates deducted. Form 132 allows them to claim credit in India and present it to their home-country tax authorities to avoid double taxation under DTAA (Double Taxation Avoidance Agreements).
- AI-enabled ITR filing: Modern tax apps (ClearTax, TaxBuddy, etc.) scan Form 132 PDFs, extract the data, and auto-populate your ITR. A standardised, machine-readable certificate makes this seamless.
Key details included in Form 132
When you download Form 132 from TRACES, the PDF will contain the following information across its three parts:
Part A — Deductor & deductee details
- Full legal name and address of the deductor (payer), including country, flat/building, street, PIN code, district, and state
- PAN, email ID, and contact number of the deductor
- Tax year for which the certificate is issued
- Nature of transaction (one of the six categories)
- Full legal name, address, and PAN of the deductee (payee/recipient)
Part B — Transaction summary
- Acknowledgement number for each transaction
- Date of payment or credit
- Amount paid or credited
- Rate at which TDS was deducted
- Amount of TDS deducted and deposited
- BSR code, Challan Identification Number (CIN), date of deposit, and challan serial number
Part C — Declaration
The deductor certifies (under their PAN and designation) the exact rupee amount deducted and deposited, and declares that all information is true, complete, and correct based on books of account and TRACES records. This is followed by a place, date, and signature (digital signature for TRACES-generated forms).
Sample filled form — dummy example
FORM NO. 132
[See rule 215(1)[Table: Sl. No. 2]] · Certificate under section 395(4) for tax deducted at source
| 1. Name (Deductor) | Ramesh Kumar Sharma |
| 2. Address | India · Flat 4B, Sunshine Apartments · Sector 22 · 110022 · R.K. Puram PO · Dwarka · New Delhi · Delhi |
| 3. PAN | ABCRS1234D |
| 4. Email ID | ramesh.sharma@email.com |
| 5. Contact No. | +91 · 9876543210 |
| 6. Tax Year | 2024 – 25 |
| 7. Nature of Transaction |
✗ Payment of rent ✓ Transfer of immovable property ✗ Commission/brokerage ✗ Fee for technical services ✗ Payment in pursuance of a contract ✗ Transfer of virtual digital asset |
| Particulars of the deductee | |
| 8. Name | Priya Nair Menon |
| 9. Address | India · Flat 203, Green Valley · Road No. 12 · 500034 · Banjara Hills PO · Jubilee Hills · Hyderabad · Telangana |
| 10. PAN | XYZPN5678K |
| Row | Acknowledgement No. | Date | Amount | Rate | TDS |
|---|---|---|---|---|---|
| 1 | ACK20250308001 | 08/03/2025 | 75,00,000 | 1% | 75,000 |
| Total TDS Deducted: ₹ 75,000 | |||||
Details of tax deposited to the credit of the Central Government:
| BSR Code | Challan Identification No. (CIN) | Date of Tax Deposit | Challan Serial No. | Amount of Tax Deposited |
|---|---|---|---|---|
| 0000512 | CIN20250308-512 | 10/03/2025 | 00045 | 75,000 |
| Total Amount Deposited: ₹ 75,000 | ||||
I further certify that the information given above is true, complete and correct and is based on the books of account, documents, challan-cum-statement of deduction of tax, TDS deposited and other available records.
1. Name: In case of individual, the first, middle and last name shall be provided in full without any abbreviations.
2. The address shall contain: i. Country/Region, ii. Flat/Door/Building, iii. Road/Street/Block/Sector, iv. PIN/ZIP Code, v. Post Office, vi. Area/locality, vii. District, viii. State.
3. Some of the information in the form would be pre-filled to the extent possible.
4. Amounts to be filled in ₹ unless otherwise provided.
Form 132 vs Form 16 (Form 130)
The most common source of confusion is between Form 132 and Form 16 (now Form 130 under the 2025 Act). Here is a clear comparison:
| Feature | Form 132 | Form 130 (old Form 16) | Form 131 (old Form 16A) |
|---|---|---|---|
| Income type | Non-salary | Salary only | Bank interest / other |
| Issued by | Buyer / Tenant / Company | Employer (HR / Payroll) | Bank / NBFC / Payer |
| Received by | Seller / Landlord / Consultant | Employee | Account holder / Investor |
| Frequency | Per transaction or annual | Annual (end of FY) | Annual or quarterly |
| ITR schedule | Schedule TDS-2 | Schedule TDS-1 | Schedule TDS-2 |
| Replaces | 16B, 16C, 16D, 16E | Old Form 16 | Old Form 16A |
| TDS rates | 1% – 10% depending on type | Per income slab | 10% standard (banks) |
Alternatives & related forms
If Form 132 does not apply to your situation, here are the other forms in the 2025 framework and which cases they cover:
Salary TDS Certificate
Replaces old Form 16. For salaried employees. Issued annually by your employer. Use for Schedule TDS-1 when filing ITR.
Bank / FD Interest TDS
Replaces old Form 16A. For TDS on interest income from FDs, savings, bonds, debentures. Issued by banks and NBFCs.
Non-salary TDS
Property, high-value rent, VDA, technical fees, contracts, commissions. Replaces 16B/16C/16D/16E. Issued via TRACES.
TCS Certificate
Tax Collected at Source — not TDS. Issued by seller for high-value goods, luxury cars, overseas remittances under LRS.
Challan-cum-Statement
Filed by the deductor to deposit TDS. The acknowledgement/challan number from this form is needed to generate Form 132.
Annual Information Statement
Not a certificate — it's an auto-generated summary. Cross-check your Form 132 figures against AIS before filing ITR to spot mismatches.
How to use Form 132 in ITR filing
Once you have Form 132 in hand, here is the step-by-step process to correctly claim TDS credit when filing your Income Tax Return:
Collect all Form 132 certificates
Gather every Form 132 issued to you during the financial year. If you have sold multiple properties or received rent from multiple tenants, you will have multiple certificates — each must be entered separately in your ITR.
Log in to the Income Tax Portal
Visit incometax.gov.in and log in using your PAN and password (or Aadhaar OTP).
Check your Annual Information Statement (AIS)
Go to e-File → Income Tax Returns → View AIS. Under the TDS/TCS section, verify that each Form 132 amount is reflected correctly. If you see a mismatch, contact the deductor immediately before filing.
Select the correct ITR form
Non-salary income is usually reported in ITR-2 (for individuals with capital gains or rental income) or ITR-3 (for business/profession). ITR-1 (Sahaj) does not accommodate most Form 132 transactions.
Enter TDS details in Schedule TDS-2
In the ITR form, navigate to Schedule TDS-2. Enter the TAN/PAN of the deductor, the acknowledgement/certificate number, the gross payment amount, and the TDS amount exactly as shown on your Form 132. Repeat for each certificate.
Upload PDF if using an AI tax app
Apps like ClearTax, TaxBuddy, and myITreturn allow you to upload Form 132 PDFs directly. Their OCR and LLM systems extract all data automatically and populate Schedule TDS-2 — saving time and reducing errors.
E-verify and track
Complete e-verification (Aadhaar OTP, net banking, or DSC). Once verified, the IT Department's backend systems cross-check your TDS credit claim with TRACES data. Matched claims are processed within 1–4 weeks; refunds typically follow within 20–30 days.
Common mistakes to avoid
- Not checking the AIS before filing: If the TDS amount on your Form 132 does not match the AIS, your ITR will be flagged for mismatch. Always reconcile first.
- Using a manually typed form: Only TRACES-generated, digitally signed PDFs are valid. Handwritten or third-party formats are rejected by the IT portal.
- Missing the 15-day rule: If you are the deductor, issue Form 132 within 15 days of filing the TDS return. Late issuance attracts penalties.
- Incorrect PAN on the form: A wrong PAN means the TDS credit cannot be applied to the deductee's account. Verify PAN before signing off on Form 141.
- Not reporting all Form 132s: Every certificate must be reported in Schedule TDS-2. Omitting one understates your TDS credit and can result in excess tax computation.
- NRIs not claiming DTAA benefit: If you are a non-resident who has been issued a Form 132 for property sale, you may be able to claim a lower rate under a Double Taxation Avoidance Agreement. Consult a CA.
Frequently asked questions
Still confused about Form 132? Here are quick answers to the most common questions:
Summary
Form 132 is the single, unified TDS certificate for all non-salary income categories under India's Income Tax Act 2025. It replaces four older forms and serves as proof of tax deducted on property sales, high-value rent, virtual digital asset transfers, professional fees, contract payments, and commissions.
If you have received any of these types of income during the financial year, always ensure you receive Form 132 from the paying party, verify it against your AIS, and report it accurately in Schedule TDS-2 of your ITR. If you are the deductor, issue it within 15 days of filing your TDS return to avoid penalties.
For complex cases — especially NRI property sales, multiple transactions in a year, or situations involving DTAA claims — I strongly recommend consulting a qualified CA who specialises in direct taxes.
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CA Sagar Batra
CA Sagar Batra is a practising Chartered Accountant with over 10 years of experience in Indian direct taxation, GST, and corporate compliance. He has assisted hundreds of individuals, HUFs, and SMEs across India — including NRIs — with ITR filing, tax planning, TDS compliance, and income tax notices.
Sagar writes regularly on changes to India's tax laws to help taxpayers stay informed and compliant without jargon. His guides are trusted by first-time filers and experienced professionals alike. He is based in New Delhi and advises clients pan-India through his practice, CA Sagar Batra & Associates.
For professional queries, tax reviews, or CA services, you may contact the practice through the website.
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