The Central Board of Direct Taxes (CBDT) has issued a detailed circular for deduction of tax at source ( TDS ) from salaries under Section 192 of the Income Tax Act, 1961.
Section 192 of the Income Tax Act, 1961 deals with tax deducted at source (TDS) on salary. Your employer will deduct TDS from the salary payable to you. The salary you receive from your employer is categorized in ‘Income’ under the head ‘Salary’ and he/she will be responsible for deducting TDS on an average rate of income tax based on the current slab rate during the relevant financial year by considering your estimated income.
In the Circular, the CBDT has explained various Rates of Income Tax As Per Finance Act, 2018, Surcharge of Income Tax, Health and Education Cess, Broad Scheme of Tax Deduction at Source from Salaries, Persons Responsible for Deduction of Tax and their Duties, Computation of Income under the Head ―”Salaries”, Rebate of Rs.12500 for Individual having total Income upto Rs. 5 Lakh, TDS on Payment of Accumulatd Balance under Recognised Provident Fund and Contribution from Approved Superannuation Fund and DDOs to Obtain Evidence /Proof of Claims.
The CBDT has also explained some illustrations, Form No. 12B, 12BB, Revised Procedure For Furnishing Qtly E-TDS/TCS Statement by Deductors/Collectors, Procedure Of Furnishing Form 24G Person Responsible for Filing Form 24G in case of State Govt Departments/Central Govt Departments, Procedure of Preparation of Quarterly Statement of Deduction of Tax U/S 200 (3) etc.
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