TDS on Salary (Section 192) & Form 16: An Employer's Guide
S
Statura Team
Under Section 192, employers must deduct tax at source (TDS) from employees' salaries every month based on their estimated annual income.
How to compute
Estimate the employee's annual salary, apply the chosen regime (old vs new), factor in declared deductions and investments, compute annual tax, and deduct 1/12th each month.
Deposit & returns
- Deposit TDS by the 7th of the next month
- File quarterly return Form 24Q
- Issue Form 16 to employees by 15 June
Old vs new regime
Collect each employee's regime choice at the start of the year โ it changes the TDS calculation significantly.
Penalties
Late deposit attracts interest (1โ1.5% per month) and late filing attracts fees under 234E.
Statura runs payroll and Form 16 / 24Q filing end-to-end.
#TDS on salary
#section 192
#form 16
#payroll compliance