Section 192 → Section 202
TDS on Salary
Quick Answer
Section 192 of the Income Tax Act, 1961 (TDS on Salary) corresponds to Section 202 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 192
Provision Summary
Employer must deduct tax on salary based on the average rate of income tax of the employee.
Sec 202
Provision Summary
Retained. Employer must consider the 'New Tax Regime' as default unless employee opts out.
Key Changes & Highlights
- Employers can now consider tax collected at source (TCS) of the employee while calculating TDS on salary to reduce excess deduction.
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Frequently Asked Questions
What does Section 192 of the Income Tax Act 1961 deal with?
Section 192 (TDS on Salary) Employer must deduct tax on salary based on the average rate of income tax of the employee.
What is the new section number for Section 192 under the Direct Tax Code 2025?
Section 192 of the ITA 1961 maps to Section 202 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 192 under the new tax code?
Section 192 is marked as "Retained" with status "Modified". Impact: Critical - Affects every salaried individual and payroll department.
What are the key changes to Section 192 under DTC 2025?
Employers can now consider tax collected at source (TCS) of the employee while calculating TDS on salary to reduce excess deduction.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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