Section 192 TDS explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 192 covers TDS on Salary paid to employees. This guide explains its rate, threshold and applicability.
Section 192 — rate, threshold & applicability
| Section | 192 |
| Nature of payment | Salary paid to employees |
| TDS rate | Slab rates (as per the employee's applicable regime) |
| Threshold limit | When taxable salary exceeds the basic exemption limit |
| Who deducts | Every employer |
| Rate if PAN not furnished | Generally 20% (or the applicable higher rate) |
When Section 192 applies
- It applies to Salary paid to employees
- TDS must be deducted once the payment crosses When taxable salary exceeds the basic exemption limit
- The deductor is: Every employer
- A higher rate applies if PAN is not furnished by the payee
Example
An employer paying ₹1,00,000/month salary deducts TDS each month based on the estimated annual tax.
Points to note
- TDS is deducted at the time of credit or payment, whichever is earlier
- A higher rate applies if the payee has not furnished a PAN
- Non-filers may attract a higher rate under Sections 206AB/206CCA
- Always verify the latest rate, as thresholds are periodically revised
TDS compliance essentials
Whichever section applies, the core TDS process is the same:
- Obtain a TAN before deducting any TDS
- Deduct at the correct rate at the time of credit or payment, whichever is earlier
- Deposit the TDS by the 7th of the next month using the right challan
- File quarterly TDS returns (24Q/26Q/27Q) and issue Form 16/16A to the payee
- Verify deductions in Form 26AS/AIS and reconcile before filing
Related Section 192 guides
- How to Deduct TDS under Section 192
- Section 192 TDS with Example & Due Dates
- Section 192 TDS Rate Chart
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