📘✨ APPLICABILITY OF SECTION 192
Section 192 of the Income-tax Act, 1961 deals with deduction of Tax Deducted at Source (TDS) on salary.
Every employer is required to deduct TDS if the estimated income of the employee during the financial year is taxable.
TDS on salary must be deducted by:
• Company
• LLP / Partnership firm
• Proprietor
• HUF
• Trust / Society
• Any person paying salary
👉 Condition: Employer–employee relationship must exist.
⏰💰 WHEN TDS SHOULD BE DEDUCTED
TDS must be deducted at the time of actual payment of salary.
Applicable on:
• Monthly salary
• Bonus / incentives
• Arrears of salary
• Advance salary
• Perquisites
• Allowances
👉 Only if estimated income exceeds exemption limit.
🧮📊 HOW TDS IS CALCULATED UNDER SECTION 192
Employer should follow these steps:
- Estimate total annual salary
- Add bonus / perquisites / other income declared
- Allow exemptions and deductions
- Reduce standard deduction
- Apply slab rate as per tax regime
- Deduct TDS monthly
👉 Standard deduction = ₹75,000
📉📘 INCOME TAX SLAB RATES – OLD REGIME (FY 2025–26)
| Income | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
👉 Rebate under section 87A available as per rules.
📈🆕 INCOME TAX SLAB RATES – NEW REGIME (FY 2025–26)
| Income | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
👉 Standard deduction = ₹75,000
👉 New regime is default unless opted otherwise
📊💼 INCOME TO BE CONSIDERED FOR TDS CALCULATION
Include:
• Basic salary
• HRA / allowances
• Bonus / incentives
• Perquisites
• Employer PF contribution (taxable part)
• Salary from previous employer
👉 Then reduce eligible deductions
🧾🧮 EXAMPLE OF TDS CALCULATION UNDER SECTION 192
Monthly salary = ₹1,00,000
Annual salary = ₹12,00,000
Deductions:
• Standard deduction = ₹75,000
• Deduction u/s 80C = ₹1,50,000
Taxable Income Calculation:
• Gross salary = ₹12,00,000
• Less deductions = ₹2,25,000
• Taxable income = ₹9,75,000
👉 Tax will be calculated as per selected regime
👉 Total tax divided over remaining months for TDS
👥💼 SALARY FROM MORE THAN ONE EMPLOYER
If employee worked with multiple employers:
• Must provide previous salary details
• Current employer will calculate total TDS
👉 If not provided → each employer deducts separately
📄🧾 TDS RETURN AND FORM 16
Employer must:
• Deposit TDS within due date
• File quarterly TDS return (Form 24Q)
• Issue Form 16 after year end
👉 Form 16 shows salary + TDS details
📅⏳ DUE DATE FOR DEPOSIT OF TDS
| Month | Due Date |
|---|---|
| April – February | 7th of next month |
| March | 30 April |
👉 Delay may lead to interest & penalty
✅📊 IMPORTANT POINTS FOR EMPLOYERS AT YEAR END
✔ Salary reconciliation
✔ Bonus included
✔ Investment proofs collected
✔ Correct tax regime selected
✔ Standard deduction applied
✔ Accurate TDS deduction
✔ PAN verified
✔ TDS deposited on time
🏁📘 CONCLUSION
Section 192 is a crucial provision for salary TDS compliance.
Accurate income estimation, correct tax calculation, and timely deposit help avoid penalties and notices.
👉 Employers should always review payroll and TDS before financial year closing to ensure full compliance.