HR & Payroll
TDS on Salary
Income tax deducted at source by the employer from monthly salary as per the employee's tax regime.
What it means
Under Section 192 of the Income Tax Act, employers must deduct TDS on the estimated annual tax liability of each employee, spread across 12 monthly payments. The new tax regime (Section 115BAC) and old regime (with deductions/exemptions) can be chosen by the employee at the start of the financial year.
Employers must also file quarterly TDS returns (Form 24Q) and issue Form 16 to each employee by 15 June of the following year.
How Easedesk handles TDS on Salary
Easedesk computes TDS monthly based on the employee's projected income, declared investments (Form 12BB), and chosen tax regime. Quarterly 24Q filings and annual Form 16 generation (Part A from TRACES + Part B from payroll) are built in.
Related terms
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