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

Mr. Rohit worked with Sunrise Pharma Ltd. from April to September and with Orion Foods Ltd. from October to March in the same tax year. Which statement is correct under Rule 215(2) of the Income-tax Rules, 2026 regarding certificates in Form 130?

Each employer issues Parts A and B of Form 130 for the period Mr. Rohit worked with it, while Part C may be issued by each employer or only the last employer, at the assessee's option, as Rule 215(2) provides.

  1. AOnly the last employer issues Parts A, B and C, 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 assessee's optionCorrect
  3. CEach employer must issue Parts A, B and C separately, with no option
  4. DPart C must be issued by the first employer, and Parts A and B by the last employer

Explanation

Rule 215(2) requires each employer to issue Parts A and B of Form 130 for the period of employment with it. Part C may be issued by each employer or by the last employer, at the assessee's option. Hence the option giving only the last employer all parts, or denying choice, is wrong.

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