Compute annual and monthly employer Tax Deducted at Source (TDS) under Section 192 for FY 2024-25 (AY 2025-26) with standard deduction and tax slabs.
Under Section 192 of the Income Tax Act, 1961, every employer paying income chargeable under the head "Salaries" is legally required to estimate the employee's total annual tax liability and deduct TDS in equal monthly installments over the 12 months of the financial year.
Employees opting for the Old Tax Regime must submit Form 12BB along with rent receipts, LIC receipts, home loan interest certificates, and tuition fee proofs before January/February to ensure the employer factors deductions into monthly TDS calculations.
Employers must deposit monthly TDS by the 7th of the following month (30th April for March) and issue Form 16 (Part A and Part B) to employees on or before June 15th following the end of the financial year.
| Income Slab (₹) | New Tax Rate | Standard Deduction Effect |
|---|---|---|
| 0 to ₹3,00,000 | Nil (0%) | ₹75,000 flat standard deduction deducted from gross salary |
| ₹3,00,001 to ₹7,00,000 | 5% | Section 87A rebate eliminates tax up to ₹7,00,000 taxable salary |
| ₹7,00,001 to ₹10,00,000 | 10% | Marginal relief applies on incomes marginally above ₹7L |
| ₹10,00,001 to ₹12,00,000 | 15% | 4% Health & Education Cess added |
| ₹12,00,001 to ₹15,00,000 | 20% | 4% Health & Education Cess added |
| Above ₹15,00,000 | 30% | Surcharge applicable if income exceeds ₹50 Lakhs |
As per CBDT Circular, the New Tax Regime is the default regime. If an employee does not formally intimate their choice, the employer will compute and deduct TDS under the New Tax Regime.
Yes. Salaried employees with no business income can freely switch between the New and Old Tax Regimes when filing their annual ITR, irrespective of the regime chosen with the employer.
Yes. Employers can factor in home loan interest loss under Section 24(b) up to ₹2,00,000 for Old Regime filers upon receipt of valid declaration.