Frequently asked questions
Is TDS applicable on Non resident Employees?
Yes, TDS to be deducted by employers on payments made to non resident employee u/s 192.
When does the liability to deduct tax at source shall arise u/s 192?
Liability to deduct tax at source shall arise at the time of actual payment of salary and not at the time of accrual.
At what amount tax has to be deducted u/s 192?
TDS u/s 192 has to be deducted on estimated income of the employee under the head “Salaries” for that Financial Year. No tax will however be required to be deducted at source for financial year 2012-2013 in any case unless the estimated salary income including the value of perquisites, exceeds –
1. Rs. 250000 - For an individual resident in India of the age of 60 years and above but less than 80 years.
2. Rs. 500000 - For an individual resident in India of the age of 80 years of more.
3. Rs.200000 - Any other individual.
At which rate TDS has to be deducted u/s 192?
TDS U/s 192 has to be deducted at the average of income tax computed on the basis of rates in force during the financial year. The total tax to be deducted on the estimated income of the employee for the relevant financial year is divided the number of months of his employment. The amount so arrived is the monthly deduction of tax at source.
However, if the employee does not have PAN No., TDS shall be deducted 20% without including Education Cess & SHEC, if the normal tax rate in this case is less than 20%
Whether provisions of S. 192 i.e. TDS on Salaries shall also apply to any remuneration in addition to ‘Salary’?
Yes Remuneration in addition to salary received by employee for work done is chargeable as‘ Salary Income’, therefore the same is liable for tax deduction at source.
Is T.D.S. Certificate required to be issued to employees upon deduction of TDS?
In case of employees receiving salary income including pension, the certificate has to be issued in form No.16. The certificate is to be issued in the deductor's own stationery. However, there is no obligation to issue TDS certificate in case of tax at source is not deducted /deductible by virtue of claims of exemptions/ deductions.
Return for TDS on Salary (Form 24Q)
Buy this plan to get TDS return (24Q) filed return for TDS deducted salaries paid.
When Tax on Salaries is to be deducted?- Section 192 casts the responsibility on the employer, of tax deduction at source, at the time of actual payment of salary to the employee. Thus, when advance salary and arrears of salary are paid, the employer has to take the same into account while computing the tax deductible.
- Filing of TDS return for salaries (For 24Q)
- Generation of Form 16
- Calculation of TDS is not part of this plan.
- For calculation and return filing you can refer to our payroll management service.
- Company
- Partnership Firms/LLP
- Proprietorship
- All other persons such as HUF, Trusts, etc making salary payment to their employees and required to deduct TDS.
- List of all employees
- Details of employees such as PAN card, Salary breakup, Proof of Investments made etc.
- Any other detail as necessary
| Plan Charges | 2500 |
| Goods & Services Tax (GST) | 450 |
| Total Cost | 2950 |
* Estimate Time for Service Completion
5-6 Days
Is TDS applicable on Non resident Employees?
Yes, TDS to be deducted by employers on payments made to non resident employee u/s 192.
When does the liability to deduct tax at source shall arise u/s 192?
Liability to deduct tax at source shall arise at the time of actual payment of salary and not at the time of accrual.
At what amount tax has to be deducted u/s 192?
TDS u/s 192 has to be deducted on estimated income of the employee under the head “Salaries” for that Financial Year. No tax will however be required to be deducted at source for financial year 2012-2013 in any case unless the estimated salary income including the value of perquisites, exceeds –
1. Rs. 250000 - For an individual resident in India of the age of 60 years and above but less than 80 years.
2. Rs. 500000 - For an individual resident in India of the age of 80 years of more.
3. Rs.200000 - Any other individual.
At which rate TDS has to be deducted u/s 192?
TDS U/s 192 has to be deducted at the average of income tax computed on the basis of rates in force during the financial year. The total tax to be deducted on the estimated income of the employee for the relevant financial year is divided the number of months of his employment. The amount so arrived is the monthly deduction of tax at source.
However, if the employee does not have PAN No., TDS shall be deducted 20% without including Education Cess & SHEC, if the normal tax rate in this case is less than 20%
Whether provisions of S. 192 i.e. TDS on Salaries shall also apply to any remuneration in addition to ‘Salary’?
Yes Remuneration in addition to salary received by employee for work done is chargeable as‘ Salary Income’, therefore the same is liable for tax deduction at source.
Is T.D.S. Certificate required to be issued to employees upon deduction of TDS?
In case of employees receiving salary income including pension, the certificate has to be issued in form No.16. The certificate is to be issued in the deductor's own stationery. However, there is no obligation to issue TDS certificate in case of tax at source is not deducted /deductible by virtue of claims of exemptions/ deductions.