How is TDS on salary calculated?

Name: Vijay R Singh & Co.
Address: Office No. 4, Vishal CHSL, D Wing, Sir Mathuradas Vasanji Road, Azad Nagar, Opp. Andheri Gymkhana, Andheri East, Maharashtra, 400069, IN
Telephone: +91 98607 23959

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerTDS on salary is deducted under Section 192 at your employee’s average rate of tax — you estimate their annual income and tax for the year (under their chosen regime) and deduct one-twelfth each month. It’s deposited by the 7th of the next month and reported quarterly in Form 24Q.

Average-rate method

Annual tax on estimated income divided across 12 months, adjusted as the year progresses.

Deposit and 24Q

Deposit by the 7th of the next month; file Form 24Q each quarter. Confirm dates.

Compliance

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This answer is general information for businesses, not professional advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.