When it applies
Section 192 applies on every salary payment to an employee whose annual salary income exceeds the basic exemption limit (₹2,50,000 under the old regime; ₹3,00,000 under the new regime, adjusted for senior citizens). Unlike most other TDS sections, there is no flat percentage — the employer estimates the employee's annual tax liability and deducts a proportionate amount each month.
Who must deduct
Every employer paying salary to an employee. This includes private companies, partnerships, individuals running a business with employees, and government bodies. Salary paid to directors who are also employees attracts Section 192; director sitting fees attract Section 194J instead.
Common mistakes
- Ignoring the employee's proof submissions and over-deducting at year-end.
- Treating reimbursements as salary — pure reimbursements with bills are not salary.
- Forgetting to provide Form 16 by 15 June following the financial year.
- Not adjusting for the employee's standard deduction, professional tax, and Chapter VI-A claims.
Frequently asked
When does an employer file the TDS return for salary?
Form 24Q is filed quarterly: by 31 July (Q1), 31 October (Q2), 31 January (Q3), and 31 May (Q4, with annual reconciliation). Form 16 is issued by 15 June of the following financial year.
Can an employee request lower deduction under Section 192?
Yes. The employee can submit Form 12BB declaring investments, rent paid, home-loan interest, and other Chapter VI-A items. The employer adjusts the monthly TDS accordingly. If actuals differ from declared at year-end, the difference is settled in the final months.
What happens if I switch jobs mid-year?
Provide Form 12B to the new employer with details of salary and TDS from the previous employer for the year. The new employer aggregates and deducts on the combined income, avoiding under-deduction that you'd otherwise need to settle while filing your return.