
Trusted by 1L+ Indians
Want to Achieve any of the below Goals upto 80% faster?

Dream Home

Dream Wedding

Dream Car

Retirement

1st Crore


Dream Home

Dream Wedding

Dream Car

Retirement

1st Crore


Trusted by 1L+ Indians
Want to Achieve any of the below Goals upto 80% faster?

Dream Home

Dream Wedding

Dream Car

Retirement

1st Crore


Dream Home

Dream Wedding

Dream Car

Retirement

1st Crore


Trusted by 3 Crore+ Indians
Want to Achieve any of the below
Goals upto 80% faster?

Dream Home

Dream Wedding

Dream Car

Retirement

1st Crore

Trusted by 3 Crore+ Indians
Want to Achieve any of the below
Goals upto 80% faster?

Dream Home

Dream Wedding

Dream Car

Retirement

1st Crore

Trusted by 3 Crore+ Indians
Want to Achieve any of the below Goals upto 80% faster?

Dream Home

Dream Wedding

Dream Car

Retirement

1st Crore


Trusted by 3 Crore+ Indians
Want to Achieve any of the below Goals upto 80% faster?

Dream Home

Dream Wedding

Dream Car

Retirement

1st Crore

Section 192 - What is TDS on Salary? and How is TDS Computed?
Section 192 - What is TDS on Salary? and How is TDS Computed?



May 10, 2023
5 Minutes




TDS on Salary: Understanding Tax Deduction at Source
Salary, the fixed payment between employers and employees, is subject to taxation under the Income Tax Act. Tax Deducted at Source (TDS) on salary, governed by Section 192, mandates employers to deduct tax from the salary based on prevailing rates.
Key Points:
TDS is deducted if the salary exceeds the minimum exemption limit.
Employers, including individuals, HUFs, companies, trusts, and co-operative societies, deduct TDS.
TDS is deducted monthly at the time of salary payment.
Penalty and interest apply if the employer fails to deduct TDS.
TDS Slab Rates:
Up to ₹2,50,000: Nil
₹2,50,001 – ₹5,00,000: 5%
₹5,00,001 – ₹7,50,000: 10%
₹7,50,001 – ₹10,00,000: 15%
₹10,00,001 – ₹12,50,000: 20%
₹12,50,001 – ₹15,00,000: 25%
Above ₹15,00,000: 30%
What TDS Covers:
Computed on CTC, including salary and perquisites.
Perquisites include benefits like fuel subsidy, travel expenses, etc.
Exemptions for HRA, travel, and medical allowances.
Calculating TDS:
Compute Earnings: Include commission, perks, and bonuses.
Verify Investment Declaration: Collect and confirm planned investments.
Determine Exemptions: Deduct eligible exemptions from gross salary.
Compute Taxable Income: Apply applicable tax slab for TDS calculation.
Additional Exemptions:
Section 80C: Investments up to ₹1,50,000 (mutual funds, life insurance premiums, etc.).
Section 80CCG: Exemptions up to ₹25,000 for specific tax-saving schemes.
Section 80D: Exemptions for medical insurance premiums.
In Summary:
TDS ensures timely tax deduction from salaries.
Employers deduct TDS based on taxable income.
Employees can claim exemptions through planned investments.
Form 16 provides details for accurate TDS calculations.
Understanding TDS on salary ensures compliance with tax regulations and maximizes available exemptions.
TDS on Salary: Understanding Tax Deduction at Source
Salary, the fixed payment between employers and employees, is subject to taxation under the Income Tax Act. Tax Deducted at Source (TDS) on salary, governed by Section 192, mandates employers to deduct tax from the salary based on prevailing rates.
Key Points:
TDS is deducted if the salary exceeds the minimum exemption limit.
Employers, including individuals, HUFs, companies, trusts, and co-operative societies, deduct TDS.
TDS is deducted monthly at the time of salary payment.
Penalty and interest apply if the employer fails to deduct TDS.
TDS Slab Rates:
Up to ₹2,50,000: Nil
₹2,50,001 – ₹5,00,000: 5%
₹5,00,001 – ₹7,50,000: 10%
₹7,50,001 – ₹10,00,000: 15%
₹10,00,001 – ₹12,50,000: 20%
₹12,50,001 – ₹15,00,000: 25%
Above ₹15,00,000: 30%
What TDS Covers:
Computed on CTC, including salary and perquisites.
Perquisites include benefits like fuel subsidy, travel expenses, etc.
Exemptions for HRA, travel, and medical allowances.
Calculating TDS:
Compute Earnings: Include commission, perks, and bonuses.
Verify Investment Declaration: Collect and confirm planned investments.
Determine Exemptions: Deduct eligible exemptions from gross salary.
Compute Taxable Income: Apply applicable tax slab for TDS calculation.
Additional Exemptions:
Section 80C: Investments up to ₹1,50,000 (mutual funds, life insurance premiums, etc.).
Section 80CCG: Exemptions up to ₹25,000 for specific tax-saving schemes.
Section 80D: Exemptions for medical insurance premiums.
In Summary:
TDS ensures timely tax deduction from salaries.
Employers deduct TDS based on taxable income.
Employees can claim exemptions through planned investments.
Form 16 provides details for accurate TDS calculations.
Understanding TDS on salary ensures compliance with tax regulations and maximizes available exemptions.
Author



Pluto Team
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