{"id":1969,"date":"2021-06-29T11:06:44","date_gmt":"2021-06-29T11:06:44","guid":{"rendered":"https:\/\/mybillbook.in\/blog\/?p=1969"},"modified":"2023-06-26T11:59:03","modified_gmt":"2023-06-26T11:59:03","slug":"tds-on-salary","status":"publish","type":"post","link":"https:\/\/mybillbook.in\/blog\/tds-on-salary\/","title":{"rendered":"TDS on Salary – Section 192 of income tax"},"content":{"rendered":"\n

Everyone is aware of what a TDS or Tax Deducted on Source is. But some people may not be aware of how it is calculated on the salary and when TDS is deducted from their salary. This guide is all about Tax Deducted at Source on Salary, which means you will get a clear understanding of who will have to pay TDS on salary, who can deduct TDS, and how TDS is calculated.  <\/p>\n\n\n\n

What is Section 192 of Income Tax?<\/h2>\n\n\n\n

Section 192 of the Income Tax Act says about the TDS deduction on salary. Usually, the TDS (Tax Deducted at Source) on salary is deducted from your salary by the employer and they pay it to the government. The TDS on salary will be deducted on an average rate of income tax which will be according to the present slab rate during the appropriate financial year. This will be done by considering the estimated income of an employee.<\/p>\n\n\n\n[adinserter block=”3″]\n[adinserter block=”4″]\n\n\n\n

When is TDS Deducted under Section 192?<\/h2>\n\n\n\n

Now let us see when this TDS is deducted from the employee and what is the salary slab to consider an employee to pay TDS. If an employee is receiving salary every month, then the TDS will be deducted by the employer before paying the salary to the employee. But if the employer is paying the salary to the employee every 4 months or 6months depending on the nature of the business, then the TDS will be deducted according to that. <\/p>\n\n\n\n

The employer must deduct the TDS from an employee who comes under that certain income slab. In case if the employer does not take away the TDS and deposit on time, then he\/she will have to face the consequences and will also be liable to pay the penalty along with the interest. In another case, if the employee is receiving salary in advance from the employer, the TDS will be deducted from the advance salary paid by the employer.<\/p>\n\n\n\n

Who can deduct and how to deduct TDS on salary monthly for example?<\/h3>\n\n\n\n

Employers such as partnership firms, co-operative societies, trusts, HUF, individuals, and both private and public companies can deduct TDS on salary. These employers must deduct TDS on salary at the precise time and the amount should be paid to the government. To deduct the TDS on salary, there should be an employer-employee connection. When it comes to deducting the TDS on salary certain factors should be considered. Some of these points are given below.<\/p>\n\n\n\n