This section cast an obligation on every person responsible for paying any income chargeable to tax under the head “Salaries” to deduct income tax on the amount payable.
Manner of deduction
Such income tax is calculated at an average rate of income tax computed on the basis of the slab rates in force for the relevant financial year in which payment is made on the estimated total income of the assessee. Hence the liability to deduct tds on salary arises at the time of payment.
In case the employee is simultaneously employed by more than one employer or takes up job with another employer during the financial year. Then he must provide all his income details with former employer. Then the current employer must evaluate the remaining tax payable from both the employers put together for the relevant financial year. Also in case where the salary is payable by government, companies, local authorities, co-operative societies, universities, institutions, association or bodies deduction of tax should be made only after allowing relief under section 89(1) where eligible.
Other than salary details the employee should also provide other income details, other tax deducted under any other provision, loss if any under the head income from house property to the employer.
Sub section (2C) provides that the employer shall furnish to the employer a statement in Form No. 12BA, giving correct and complete information about the perquisites or profit given in lieu of salary. This is applicable only when the salary paid payable exceeds Rs. 150000.
Also under this section the employer is liable to obtain certain evidence supporting the deduction or set of losses.
| Nature of Claim | Evidence or particulars |
| House Rent Allowance | Name, address and PAN of the landlord where the aggregate rent paid exceeds Rs. 1 Lakh. |
| Leave travel concession or assistance | Evidence of expenditure |
| Deduction of interest under the head “Income from house property” | Name, address and PAN of the lender |
| Deduction under Chapter VI –A | Evidence of investment or expenditure. |
Now Let’s understand Section 192 through an example:-
The income chargeable under the head “salaries” of an employee of age 35 years for the year inclusive of all perquisites is Rs.8,00,000/-
Under Old regime
Calculation of TDS to be deposited to the government
| Gross Salary | Rs. 8,00,000/- |
| Less : Standard Deduction | Rs. 50,000/- |
| Income Chargeable under the head “Salaries” inclusive of all perquisites |
Rs. 7,50,000/- |
| Less : Deduction under section 80C | Rs. 1,50,000/- |
| Total income | Rs. 6,00,000/- |
| Tax on Total Salary (including Cess) | Rs. 33,800/- |
| Amount required to be deposited each month | Rs. 2,817 (33800/12) |
Under New Regime
Calculation of TDS to be deposited to the government
| Gross Salary | Rs. 8,00,000/- |
| Less : Standard Deduction | Rs. 0/- |
| Total Income | Rs. 8,00,000/- |
| Tax on Total Salary (including Cess) | Rs. 46,800/- |
| Amount required to be deposited each month | Rs. 3,900 (46800/12) |
Note:- No deduction under section 80 is available under new regime.
The tax so paid by the employer shall be deemed to be TDS made from the salary of the employee.
