Employers must deposit a certain amount of income tax from employee salaries with IT Department monthly. Individuals pay income tax throughout the financial year rather than at the end.
This document covers
Salary is a comprehensive term that includes both monetary and non-monetary compensation. All remuneration provided by an employer in exchange for services rendered by an employee is subject to taxation in the form of salaries. Salary includes the following
Section 192 covers salary TDS. Everyone who pays “Salaries” income must deduct TDS.
TDS u/s 192 needs to be deducted at the time of payment to employee.
As per Section 192(2D), it is the responsibility of employer to obtain the evidence or proof of prescribed claims (Investments) for the purpose of computation of Income and Income tax payable
|S.No||Nature of Claim||Evidence of investments claimed|
|1||House Rent Allowance (HRA)||Name, Address and PAN of the landlord where the aggregate rent paid during the previous year exceeds Rs 1 lakh|
|2||Leave travel Allowance (LTA)||Evidence of expenditure|
|3||Interest on Home Loan||Name, Address and PAN of lender|
|4||Deduction u/s Chp VIA||Evidence of Investment or expenditure|
NOTE: If the employee is having any other income apart from salary, he needs to declare such other income and particulars of any tax deducted at source to employer.
The due date for payment of TDS deducted u/s 192 is within 7 days from the end of the month in which deduction is made. However, for the March month, due date is April 30
For due dates related to taxes, refer Latest Tax Calendar
The employer is required to issue Form 16 no later than 15 days after the date on which Form 24Q was filed for the previous quarter. Yearly, Form 16 will be generated.