SECTION 192 – TDS on Salary
Table of Contents
What is Section 192 – TDS on Salary
Section 192 of the Income Tax Act, 1961 deals with the deduction of tax at source (‘TDS’) on Salary to employees.
Any person responsible for paying any income chargeable under the head ‘Salaries’ is required to deduct TDS on the amount payable. Form 16 from employer reflects the calculation of salary income, tax payable on income and TDS.
Who is responsible for tax deduction u/s 192 ?
Any person responsible for paying any income chargeable under the head ‘Salaries’ includes any of the followings:
- Company
- Firm / LLP
- Individual or HUF
- Trust
- AOP/BOI
- Local Authority
- Central Government
- State Government
- Corporation
- Co-operative society
- Society
- University
- Foreign Government
Rate of tax deduction on Salary u/s 192
TDS on income from salary is calculated after arriving net income (Income from salary and other incomes net of exemption and tax deduction allowed). Tax amount is calculated on net income.
There is no specific tax rate is defined in section 192.
- Exemption Limit: No tax is required to be deducted unless the estimated salary exceeds the amount not chargeable to tax. This is applicable even if the employee does not have a PAN.
- Income from Salary: Consider the estimated salary payable during the financial year including Leave encashment, perquisites and allowances by whatever called
- Income from other sources: Add Income from other sources in case the details is provided by employee to employer
- Exemptions: Deduct from income, all exemptions allowed on salary income like House Rent Allowances, Leave Travel Concession
- Deductions: Deduct all deductions allowed like 80C, 80CCC, 80CCD, 80CCG, 80D, 80DD, 80DDB, 80E, 80EE, 80GG, 80GGA, 80TTA and 80U
- Net Income: Arrive net income adding all incomes and reducing all deduction, exemptions.
- Tax Payable: Calculate tax payable on the net income.
- Tax deducted at source: TDS has to be deducted towards tax payable.
Salary from more than one employer
In case of employee is engaged with two or more employer, employee should provide details of previous employment in form 12B to new employer.
New Employer will consider the details provided in form 12B and deduct tax at sources from salary accordingly.
Whether surcharge, education cess to be added in TDS ?
Surcharge or health and education cess has to be considered in TDS on salary.
What is the time limit for depositing TDS on Salary u/s 192 ?
The time limit for depositing TDS amount to the account of the Government
- Government: The amount needs to be paid on the same day where the payment is made by or on behalf of the Government
- Other than Government:
- Salary is credit and TDS is deducted in March, within next month by 30th April
- If salary is credited and TDS is deducted in any month other than March- the amount has to be deposited within the 7th of the next month.
FAQs Section 192 TDS on Salary
How to TDS Statement from employer
The employer needs to furnish Form 16 to employees containing details of income and tax deducted at sources.
Also read:
- TDS Rate Chart FY 2021-22
- Income Tax Slab for FY 2021-22
- TRACES – Install Emsigner
- Download TAN Allotment
- Depreciation Income Tax
- Tax Deducted at Source – Basic
