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TDS on salary: CBDT issues IMPORTANT circular on salary income, check details
The circular basically explains the obligation of employers with regard to the deduction of tax at source from salaries under section 192 of the Income-tax Act, 1961 for Financial Year 2022-23.
New Delhi: The Central Board of Direct Taxes (CBDT) in a circular related to TDS deduction from salaries has said that any person responsible for paying salary must deduct income tax while paying the amount.
The circular said that the tax should be deducted at the average rate calculated, based on the rates in force for the current financial year, on the estimated salary income of the recipient for that year. (Read more: Bank of India hikes FD rates, new rates applicable from today 13 December)
The circular was issued last week by CBDT. (Read more: Will govt remove image of Mahatma Gandhi from Indian Currency notes? )
The circular basically explains the obligation of employers with regard to the deduction of tax at source from salaries under section 192 of the Income-tax Act, 1961 for Financial Year 2022-23.
As per Section 192, the person responsible for paying salary income must provide the recipient with a statement giving correct and complete particulars of perquisites or profits in lieu of salary provided to him and the value thereof.