Form 132 TDS certificate issuance changes

7 Powerful Signals Ather Energy’s Rs 1,200 Crore Fundraise Sends About India’s EV Funding Landscape

TDS certificate issuance has undergone important changes under the new tax framework. The revised TDS certificate process is designed to simplify compliance and standardize how certificates are generated and issued.

TDS certificate issuance is undergoing important changes under the new tax framework. The revised process aims to simplify compliance, standardize certificate issuance, and make it easier for taxpayers and businesses to manage their TDS requirements.

On 15 July 2026, Ather Energy’s board approved a Rs 1,200 crore preferential issue — the first tranche of a broader Rs 2,500 crore capital-raising programme that the Bengaluru-based electric two-wheeler manufacturer had sanctioned in June. The raise is backed entirely by existing investors:

Hero MotoCorp is committing Rs 960 crore through convertible warrants, the government-backed India-Japan Fund is investing Rs 200 crore through equity shares, and Ather’s co-founders Tarun Mehta and Swapnil Jain are contributing Rs 40 crore through warrants. Coming just over a year after Ather’s Rs 2,981 crore IPO in April 2025, this EV funding development signals continued investor confidence in India’s electric two-wheeler manufacturing space at a moment when competition is intensifying and capital requirements are growing. Here are seven powerful signals this fundraise sends about the broader landscape.

1. Existing Investors Doubling Down Is the Strongest Possible Confidence Signal
In the world of early and growth-stage investing, the most credible signal of conviction is not a new investor entering at a premium valuation — it is an existing investor who already has full information about a company’s performance, challenges, and competitive position choosing to put in significantly more capital.

The fact that Hero MotoCorp, which already holds a 29.48 percent stake in Ather Energy as of June 30 2026 and is the company’s largest shareholder, is committing Rs 960 crore of the Rs 1,200 crore preferential issue through convertible warrants is a statement of exceptional strategic alignment. Hero’s continued investment is not speculative — it is informed, deliberate, and reflects a strategic judgment that Ather Energy’s position in India’s electric two-wheeler market justifies further capital deployment at this stage of the company’s growth.

2. Government-Backed EV Funding Signals Policy Alignment at the Highest Level
The participation of the India-Japan Fund in Ather Energy’s preferential issue carries significance well beyond its Rs 200 crore contribution. The India-Japan Fund is a bilateral private equity vehicle backed jointly by the Government of India and the Japan Bank for International Cooperation, managed by the National Investment and Infrastructure Fund — making it an instrument of sovereign-level strategic investment rather than a purely commercial one

The new TDS certificate framework brings changes to the way taxpayers and deductors manage their TDS compliance. Understanding these TDS certificate changes can help businesses avoid delays and errors.

. When a fund of this character participates in a listed electric two-wheeler company’s capital raise, it reflects a policy judgment that Ather Energy’s growth trajectory aligns with India’s national objectives around electric mobility, domestic manufacturing, and Indo-Japanese industrial cooperation. For the broader EV funding ecosystem, government-backed capital alongside commercial capital in the same deal round is a powerful signal of sector-level policy support that de-risks private investment.

3. The Capital Allocation Reveals Ather’s Strategic Priorities Clearly
The announced use of the Rs 1,200 crore raised provides a clear window into where Ather Energy believes the most critical investments lie at this stage of its development. Of the total, Rs 625 crore will be deployed to repay outstanding borrowings, which stood at Rs 893.69 crore as of June 30 2026 —

a balance sheet strengthening move that improves debt-to-equity ratios and reduces interest burden ahead of the competitive campaigns ahead. Rs 275 crore is earmarked for marketing initiatives, reflecting the intensifying battle for consumer mindshare in a market where Ola Electric, Bajaj Chetak, and TVS iQube are all competing aggressively.

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The remaining Rs 300 crore goes to general corporate purposes, covering manufacturing capability investments and product development needs. This allocation signals that Ather Energy’s leadership views financial resilience and brand investment as the twin priorities for the next phase of growth.

A valid TDS certificate provides important information about tax deducted and helps taxpayers claim the appropriate TDS credit. Businesses should therefore review the TDS certificate issuance process carefully.

4. The Warrant Structure Signals a Long Horizon, Not a Quick Exit
The structural detail of how Hero MotoCorp and the founders are participating in the Ather Energy preferential issue deserves attention. Both are subscribing through convertible warrants rather than direct equity shares, with 25 percent of the issue price payable at allotment and the remaining 75 percent due upon conversion into equity shares within an 18-month window. This structure is significant for two reasons.

First, it stages the capital deployment in a way that aligns investor obligation with company performance over time, rather than committing the full amount upfront. Second, it signals that the primary investors in this EV funding round are operating with an 18-month-plus horizon rather than positioning for a near-term exit — a characteristic more consistent with strategic industrial partnership than with financial investment seeking rapid returns.

TDS certificate issuance is changing under the new tax framework, bringing a more streamlined approach to TDS compliance. The updated TDS certificate process is designed to simplify certificate generation, improve transparency, and reduce administrative difficulties for taxpayers and businesses. Understanding the latest TDS certificate requirements, issuance timelines, and correction procedures can help deductors maintain accurate records and ensure timely compliance. Businesses should carefully review the revised TDS certificate rules to avoid errors, delays, and potential compliance issues.

5. The Fundraise Positions Ather for the Intensifying Two-Wheeler EV Market Battle
India’s electric two-wheeler market has entered a phase of intensifying competition that is structurally different from the environment Ather operated in during its early years as a premium, technology-first brand. Ola Electric has aggressively expanded its price points downward, Bajaj has leveraged its manufacturing scale to compete in the value segment, and TVS’s iQube range has gained meaningful market share in key southern markets.

In this context, the Rs 1,200 crore preferential issue is not simply a balance sheet exercise — it is a war chest that gives Ather Energy the resources to compete on product, distribution, marketing, and manufacturing scale simultaneously rather than having to trade off between these priorities due to capital constraints. EV funding at this level, from investors with strategic rather than purely financial motivations, gives Ather a runway that purely commercially oriented capital might not.

The revised TDS certificate system aims to make tax compliance more efficient by standardizing the process of issuing and managing certificates. Businesses and deductors should understand the updated TDS certificate requirements, including applicable timelines and procedures, to ensure accurate reporting. Timely issuance of the TDS certificate can help taxpayers verify their tax deductions, claim eligible TDS credit, and maintain proper financial records. Staying informed about these TDS certificate changes can also help organizations reduce compliance errors and avoid unnecessary delays.

6. The Broader Rs 2,500 Crore Plan Signals Ambitious Expansion Ahead
The Rs 1,200 crore preferential issue is the first tranche of a Rs 2,500 crore total capital raising programme that Ather Energy’s board sanctioned in June 2026. The remaining Rs 1,300 crore is expected to be raised through a Qualified Institutional Placement, the terms and timing of which have not yet been announced. The overall scale of this EV funding programme — Rs 2,500 crore in a single capital raising cycle

— places it among the most significant fundraising efforts in the history of India’s electric two-wheeler sector and signals that Ather’s leadership is planning for a significant expansion in manufacturing capacity, product range, and geographic reach that the current capital base alone could not comfortably support. The QIP tranche, when announced, will reveal which institutional investors are prepared to back Ather’s next chapter at a meaningful scale alongside its existing strategic partners.

7. The Timing Reflects Mature Investor Confidence in India’s EV Sector Fundamentals
Ather Energy’s Rs 1,200 crore preferential issue arrives at a moment when India’s electric two-wheeler market has moved past the early-adopter phase into mass-market competition, and when the policy environment — through FAME subsidies, PLI schemes for advanced chemistry cell batteries, and state-level EV incentives —

has demonstrated sustained government commitment to the transition. The fact that strategic investors of the stature of Hero MotoCorp and a government-backed bilateral fund are increasing their exposure to Ather Energy in this environment reflects a judgment about the long-term fundamentals of India’s EV transition that goes beyond the immediate competitive dynamics. For the broader EV funding ecosystem, deals of this size and composition from this calibre of investor normalise large-scale capital commitment to Indian electric two-wheeler manufacturers and make subsequent fundraising by other players in the sector progressively easier.

One Fundraise, Seven Signals — and All of Them Point the Same Way
Ather Energy’s Rs 1,200 crore preferential issue is a single corporate finance transaction, but the signals it carries about investor confidence, strategic alignment, competitive positioning, and the maturity of India’s EV funding ecosystem are collectively significant.

The involvement of Hero MotoCorp at scale, the participation of a government-backed bilateral fund, the capital allocation priorities that balance financial health with growth investment, and the ambitious broader programme of which this is only the first tranche all point in the same direction: toward continued and deepening investor conviction that India’s electric two-wheeler manufacturing space is one of the most important industrial transitions of this decade, and that Ather Energy intends to be a defining participant in it.

A TDS Certificate serves as an important document for taxpayers who need to verify the tax deducted from their income. The TDS Certificate provides details such as the amount of tax deducted, the income on which tax was deducted, and the tax deposited with the government. Keeping the TDS Certificate safely can help taxpayers complete their income tax return accurately and reconcile the tax credit reflected in their records.

Frequently Asked Questions

What is Form 132?

Form 132 is the new TDS certificate issued under the Income-tax Act, 2025, replacing multiple earlier TDS certificate forms such as Form 16B, 16C, 16D, and 16E for specified transactions.

Why was Form 132 introduced?

The government introduced Form 132 to simplify TDS compliance by creating a unified certificate for various specified TDS transactions, making the process more streamlined and consistent.

Who is required to issue Form 132?

The deductor (the person or entity deducting TDS) is responsible for downloading Form 132 from the TRACES portal and issuing it to the deductee after the tax has been deducted and deposited.

Can Form 132 be generated before filing Form 141?

No. Form 132 can only be generated after the corresponding challan-cum-statement in Form 141 has been successfully filed and processed.

What is the deadline for issuing Form 132?

Form 132 must be issued within 15 days from the due date of filing Form 141.

Is Form 132 available offline?

No. Form 132 must be downloaded from the TRACES portal. Certificates created outside the TRACES system are not considered legally valid.

Which transactions are covered under Form 132?

Form 132 applies to specified TDS transactions such as: Purchase of immovable property Rent payments Payments to contractors and professionals Transfer of Virtual Digital Assets (VDAs)

What should be done if there is an error in Form 132?

The deductor must first file a correction to Form 141. Once the correction is processed, a revised Form 132 can be generated from the TRACES portal.

Is Form 132 legally valid for claiming TDS credit?

Yes. Form 132 is an officially recognized TDS certificate and serves as proof of tax deducted and deposited, enabling the deductee to claim TDS credit while filing their income tax return.

Citations & References

References
[1] Ather Energy Ltd., “Regulatory Filing: Preferential Issue of Equity Shares and Convertible Warrants,” National Stock Exchange of India, Jul. 15, 2026. [Online]. Available: https://www.nseindia.com/
[2] Business Standard, “India’s Ather Energy to raise $125 million via share issue, warrants,” Business Standard, Jul. 15, 2026. [Online]. Available: https://www.business-standard.com/companies/start-ups/india-s-ather-energy-to-raise-125-million-via-share-issue-warrants-126071500813_1.html

[3] Outlook Business, “Ather Energy’s Rs 1,200-Cr Fundraise Explained: What It Means for the EV Maker,” Outlook Business, Jul. 2026. [Online]. Available: https://www.outlookbusiness.com/corporate/ather-energys-1200-cr-fundraise-explained-what-it-means-for-the-ev-maker
[4] Entrackr, “Ather raises Rs 1,200 Cr from Hero MotoCorp, India-Japan Fund and promoters,” Entrackr, Jul. 2026. [Online]. Available:

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