TDS on Salary — Section 192 (now 392)
Rate
| Type of payment | Rate (with PAN) | Notes |
|---|---|---|
| any | slab | Average rate of tax on estimated annual income; regime as opted by employee |
No valid PAN: 20% or the normal rate, whichever is higher (Section 397(2), old 206AA).
Threshold
TDS applies when: Any amount. Once a threshold is crossed, TDS applies on the full amount, not just the excess.
Exemptions & relief
- No special exemptions beyond the threshold.
If you get it wrong
Late deduction: 1% per month or part thereof, from date deductible to date deducted.
Late deposit: 1.5% per month or part thereof, from date deducted to date deposited.
Late return: Rs 200/day (234E equivalent), capped at TDS amount in the statement.
Non-deduction: 30% of expenditure disallowed for non-deduction/non-deposit (40(a)(ia) equivalent); wrong payment code can trigger the same — verify scope under 2025 Act.
Good to know
- Old 192 and 192A both consolidated into Section 392
FAQs
What is the new section number for 192 from FY 2026-27?
Under the Income Tax Act 2025, 192 now falls under Section 392. The payment/return code is 1001 or 1002 or 1003.
What is the TDS rate under section 192?
slab. If the payee has no valid PAN, 20% applies (or the normal rate, whichever is higher).
What is the threshold for 192?
Any amount.
Which TDS return is 192 reported in?
Form 138 (was 24Q), filed quarterly.
Written and reviewed by a CA firm. Verified 2026-06-08 against the Income Tax Act 2025 / Finance Act 2025. General information, not advice for your specific case.