All you need about TDS on Salary under Section 192

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

All about TDS on Salary under Section 192 – Kotak Life

All about TDS on Salary under Section 192 – Kotak Life
  • 28th Nov 2019 |
  • 3,350

Section 192 of the Income Tax (IT) Act, 1961 relates to the Tax Deducted at Source (TDS) on salary. Your employer is responsible to deduct the TDS from your salary. The applicable TDS is calculated as per your income during the year and the current tax slab rate.

The total TDS will be reflected in Form 16 issued by your employer at the end of the financial year. Explained ahead are some important points related to the TDS such as who can deduct it, when is the deduction applicable, the deduction rate for the financial year 2019-20, and how to calculate TDS on salary, among other aspects.

Who can deduct TDS?

Private and public limited companies, co-operative societies, individuals, Hindu Undivided Families (HUFs), partnership firms, and trusts may deduct TDS on salaries. These entities are liable to deduct the TDS and deposit the amount with the government authorities within the specified period.

When is the TDS deduction applicable?

TDS is deducted when the salary is paid and not when it is accrued. However, if your total income does not exceed the basic exemption limits, TDS is not deducted. The rule applies even to employees who do not have a Permanent Account Number (PAN).

In the following instances, TDS deduction is not applicable:

  • Minimum income for an Indian Resident aged less than 60 years is below INR 2.5 lakh
  • Seniors aged between 60 and 80 years whose minimum income is less than INR 3 lakh
  • Minimum income for super seniors aged over 80 years is below INR 5 lakh

TDS deduction rate for Financial Year 2019 – 20

A common question is how to calculate TDS and what is the rate? Section 192 does not specify the TDS deduction rate. The amount of TDS is based on your annual income and tax slab rate applicable during the financial year in which the salary is earned.

Firstly, all the applicable deductions are considered for your salary. The total tax liability is then determined as per the current tax slab rate. Usually, the employers do the estimated tax liability calculation at the start of the financial year.

The TDS is then calculated by dividing the total liability with the number of months during which you are employed by the company. However, if your PAN is unavailable, TDS is deducted at a flat rate of 20%, which excludes higher education cess and the education cess.

Any surplus or shortfall may be adjusted by decreasing or increasing the TDS deductions for the subsequent period during the financial year.Additionally, if you pay any advance tax, the same may be adjusted against the TDS deduction.

Let us take an example to understand how to calculate TDS on salary. Assume that you are 40 years old with a monthly salary of INR 50,000 during the financial year 2019–20.

Your total income during the year is INR 6 lakh. Further, assume that the deduction under Chapter VI A is INR 1 lakh. Therefore, the taxable income is INR 5 lakh. The total income tax liability along with the health and education cess is INR 13,000.

If you continue working with the same employer for the entire financial year, the monthly TDS deducted will be INR 13,000/12, which equals to INR 1083.33 per month.

How to calculate TDS if you earn a salary from more than one employer

If you work with more than one employer during the year, you may provide details about your salary and TDS as per Form 12B to either of your employers. After receiving all the relevant information about your income, the responsibility of deducting the applicable TDS after calculating the gross salary lies with the employer.

If you resign from one job and join another company during the financial year, the TDS calculation on salary will be done by your new employer once you submit Form 12B of the previous employer. The new employer considers the previous salary and TDS deduction will be based on the balance months during the financial year.

TDS statements

Every employer must provide Form 16 showing how much TDS is deducted on salary during the year. It may be accompanied by Form 12BA, which shows details about any perquisites or profits paid instead of salary.

Your employer must pay the deducted amount to the government authorities before the due date. Knowing what is TDS and how it is calculated is important; however, it is equally crucial to ensure your employer pays the amount to the government in a timely manner to ensure you receive the benefits at the time of filing your returns.

Read Here for More Related Articles:

Download Brochure


  • Increasing Life Cover*
  • Guaranteed^ Maturity Benefits
  • Enhanced Protection Through Riders
  • Tax Benefits
  • Dual Benefits: Guaranteed^Maturity + Death benefits

Ref. No. KLI/22-23/E-BB/999


Browse our library of resources

Download Brochure


  • Enhanced Protection Through Riders
  • Life Cover
  • Tax Savings
  • Multiple Premium Payment Terms
  • Guaranteed @ Loyalty Addion
  • Accrued Guaranteed @ Additions

Ref. No. KLI/22-23/E-BB/490


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Income Tax Filing For NRI in India

9 Point Guide on how to File Income Tax Return Online

Tax Benefit of Investing in Term Plan

Tax-Free Income in India

Problems People Face with Tax Returns after a Job Change

A Complete Guide for Filing ITR 3 Form

Section 80C Deductions as per Income Tax Act, 1961

Union Budget Highlights – 1st February 2022

How Much Money This Budget 2019 Can Help You Save

Tax Deductions You MUST Know

How to Save Income Tax with Insurance

ITR-6: Guide to filing ITR-6 Form online

What is Section 80C - Explained in Detail

What is TDS Refund Process?

What is the TDS Rate on Salary?

Income Tax Benefits for Doctors

How To Save Tax Using Life Insurance?

E-Filing of Income Tax Returns in India

How to Get Form 16?

Income Tax Exemption for Disabled

Guide for Tax Calculation on your Salary

What is Tax Deduction at Source (TDS)?

Investment Proofs You Need Submit To Lower TDS Cut From Your Salary

ITR 2 Form – Complete Guide

How to Check Income Tax Refund Status Online in India

Section 80E: Tax Exemption on Interest on Education Loan

What is HRA (House Rent Allowance) and How is HRA Exemption Calculated?

Tax Saving Tips: Best Ways to Save Income Tax for 2021

Top 8 Tax-Saving Methods in India- Budget Planning

Financial Planning and Best investment options for Housewives

What is Section 80C Deduction?

Understanding Tax Exemptions in ULIP (Old and New)

Save Income Tax by 31st March: Here Is a Checklist

Investing Lump Sum Amount

How to File TDS Return?

What is Section 10D of the Income Tax Act?

Tax Planning and Tax Benefits of Life Insurance

5 Popular Tax-Saving Schemes in India

Form 16, Form 16A, and Form 16B?

Role of Life Insurance in Your Financial Portfolio

Income Tax Exemption for Physically Handicapped Dependent

How to File Income Tax Return for First Time Tax Payers

Tax Saving Options for Salaried Employees

Income Tax Deduction Under Section 80CCC In India

What are the Different Types of Taxes in India?

Income Tax Deductions for Disabled Person Under Section 80U

Section 80G of the Income Tax Act

How to File Form 16 for Salaried Employees?

How to file Form 16 online?

Home Investment Plan to Buy Dream Home

Difference between Section 80C and 80CCC of the Income Tax Act, 1961

What is Form 26AS - All You Need To Know

What is ITR 5 Form and How to File ITR 5?

What is Form 16A?

How to File Income Tax Return without Form 16

Difference between Section 80C, 80CCC, 80CCD & 80D

7 Important Things to Remember While Investing in a Savings Investment Plan

Tax Saving Options other than Section 80C

Can You Get Term Insurance Without Income Proof?

Income Tax Deductions Under Section 80C

Types of Riders in Insurance Policy

Tax-Savings Investments and Options in India

What To Do If Your TDS Is Not Deposited With The Government?

What is TDS Slab?

What is Section 195 of the Income Tax Act? TDS on Non-Residents of India

Section 16 of the Income Tax Act (ITA), 1961

Why Tax Planning Should Be an All-year Round Activity

9 Income Tax Myths That Could Cost You Money while Filing returns

Types of Income Tax Return (ITR) Forms

Tax Exemption and Scope of Coverage

What are Direct Taxes? How to Avoid being Overtaxed?

Are Financial Planning and Tax Planning the Same Thing?

Tax Benefits for Startups in India

Interest Imposed Under Section 234A, 234B and 234C

Have You Considered Term Insurance a Part of Your Tax Planning?

How to e file ITR on Income Tax Government Portal

All about TDS Payment Online & Due Dates

Pradhan Mantri Suraksha Bima Yojana

How to File Income Tax Return - Everything You Need To Know

A Guide to Life Insurance Policy’s Tax Benefits and Taxability

Do Beneficiaries Pay Taxes on Life Insurance?

What are the Tax Benefits of Sukanya Samriddhi Yojana (SSY)?

TDS Due Dates of FY 2020-21 For Return Filing

How to Check Income Tax Returns Status Onine?

Tax Saving Guide for 2019-20

How to Pay Advance Tax Online in India

LTC Cash Voucher Scheme October 2020 – Everything You Need to Know

How to File Form 10E for Tax Relief on Salary Arrears?

All You Need to Know About Section 80C

How to save tax for salaried person?

How to Check Income Tax Refund Status Online in India

List of Important Income Tax FAQs

9 Tax Changes in Budget 2019 that may Impact Your Personal Financial Planning

Received an Income Tax Notice? Your Guide to Understanding Intimations under Section 143 (1)

52 Weeks Savings Plan: Daily Savings Plans for a Better Tomorrow

What is Form 16B?

Guaranteed Return Plans-Why is it a must for you?

Financial Benefits and Government Schemes Every Woman in India Should Know

Insurance and Endowment: Everything You Need to Know!

Impact of GST on Life Insurance in India

5 Unusual Investments You Didn't Know for Saving Taxes in India

How can I get Form 16B from traces?

धारा 80डी आयकर अधिनियम, 1961

Saving Income tax in 2017 - 18

Everything You Need to Know About Tax Benefits of National Pension Scheme (NPS)

धारा 80सी आयकर अधिनियम, 1961

What is the Difference Direct Tax and Indirect Tax

How to Save Tax on Salary Arrears?

आयकर स्लैब 2021-2022

How to e-Verify your Income Tax Return

Tax Saving for Self Employed in India

How to File ITR Online

How to Download Form 16?

How To Save Tax Better with 80C

Tax Season Is Coming- Know How to Save Tax

What is the Percentage of Tax Deducted at Source (TDS)?

Things to Do After Filing Income Tax Returns

Section 44AD of Income Tax Act for AY 2020-21

Income Tax Slabs and Rates in India for FY 2021-22/AY 2022-23

What is the Last ITR Filing Date and Penalty for Late Filing of ITR?

Budget 2019: Impact on the Common Man in India

ITR 1: Sahaj Form

A Comprehensive Guide to Understand the ITR 7 Form

How to View 26AS and Download Form 26AS Online?

Sub-sections Under Section 80C of the Income Tax Act, 1961

What is Section 80C Deduction Limit?

Penalty For Late Filing TDS Return

How to View 26AS and Download Form 26AS Online

Tax Benefits of ULIP Plans Available for NRIs

Section 10 (10d) of Income Tax Act, 1961 on Payouts of Life Insurance Policy

Why January Is an Important Month for Saving Tax?

What Investment Options Come with Tax Incentives?

What is Salary Protection Insurance and Why You Need It

What is TDS Exemption Limit?

Tips to plan your savings in 2019

How to Claim TDS Refund for Excess TDS Deduction?

What Is Advance Tax and How Is It Calculated?

What is the Difference between Form 16 and Form 16A?

All about Online Income Tax Calculator

Section 80D - Medical and Health Insurance Tax Benefits Under Section 80D

Why is Form 16 Important?

Income Tax Filing Using Multiple Form 16

How do I Calculate My Term Insurance Premium

Tax Structure in India

Presumptive Taxation for Business and Profession

What is Tax Evasion and What Are The Penalties For Tax Evasion In India?

What is ITR & How to File Income Tax Return

Difference Between Gross Income & Total Income in Calculating Income Tax

Income Tax Deductions & Exemptions under Sections 80C, 80D & 80DDB for FY 2020-21 & 2021-22

What is Section 80CCC of the Income Tax Act 1961

What is Challan 280? How to Pay your Income Tax Online with Challan 280?

When Should TDS be Deducted and Who is Liable to Deduct it?