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CA Final · Direct Tax Laws & International Taxation · Basic Concepts

Mr. Arvind Rao was employed by Alpha Ltd. from April to August and by Beta Ltd. from September to March in the same tax year. Both employers deducted tax on salary. Under Rule 215(2) of the Income-tax Rules, 2026, which statement is correct about the certificates in Form No. 130?

Each employer must issue Parts A and B of Form 130 for the period of employment with it, while Part C may be issued by each employer or only by the last employer, at the assessee's option, as provided in Rule 215(2) of the Income-tax Rules, 2026.

  1. AOnly the last employer issues Form 130, covering the whole year
  2. BEach employer issues Parts A and B for the period of employment with it, and Part C may be issued by each employer or by the last employer at the option of the assesseeCorrect
  3. CEach employer issues Parts A, B and C only for its own period, with no option
  4. DEach employer issues Part C only, and Parts A and B are issued by the Director General

Explanation

Rule 215(2) says each employer issues Parts A and B of Form 130 for the period the assessee was employed with it. Part C may be issued by each employer or by the last employer, at the option of the assessee. The option to have only the last employer issue Form 130 for the entire year is not provided.

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