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What is TDS on salary?

How employers deduct income tax from monthly pay.

Employers deduct tax at source from salary, based on the employee's estimated tax for the year. This is TDS under section 192.

The amount depends on the tax regime the employee chooses and on declarations such as investments and rent paid.

The deducted tax is deposited with the government, usually by the 7th of the next month, and reported in quarterly returns.

After the year ends, the employer issues Form 16.

Dates and rules change. Check the current notification or ask your adviser before relying on this page.

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