Section 192 Of Income Tax Act : Here¡¯s Everything You Need To Know

Section 192 of Income Tax Act, 1961 this act deals with the tax deducted at TDS on salary. Your employer will deduct TDS from the salary. The salary you receive from your employer is under the category of ¡®Income¡¯ under this head ¡®Salary¡¯ and that person will be responsible for deducting TDS on an average rate of income tax based on the current slab rate during the financial year by involving the estimated income.

Unsplash

The TDS deducted u/s 192 is reflected in the Form 16, this is issued by the taxpayer at the end of the year - financial.

Who Can Do Deduction Of TDS Under Section 192?

These employers include Companies -private or public companies.

Individuals, HUF Trusts, Partnerships firms, Co-operative societies etc.

All these need to cut the TDS at a specified time and deposit it to the government.

As per Section 192 of the income tax act, there should be an employer- employee relationship for the deduction of tax.

Rate of Tax Deduction For Financial Year 2019-2020

Unsplash

Section 192 does not specify a TDS rate. TDS will be deducted as per the income tax slab and the rates thereof it is applicable to be relevant only with the financial year for which the salary is paid.

The salary of the employee is calculated after taking into account all the deductions applicable and then deductions applicable and then tax is calculated according to all tax applicable to you.

Please note that if you do not have a PAN, TDS shall be deducted at the rate of 20 per cent.

Time Bracket To Deposit the Tax Under Section 192

If the TDS is deducted by any government employer - It has to be deposited on the same day.

If the salary is credited and TDS is deducted in the month of March - April 30.