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 Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 192
Under the Income Tax Act, 1961, Section 192 governs TDS on salary. Employer must deduct tax on salary based on the average rate of income tax of the employee.
From 1st April 2026, the same subject sits at Section 202 of the Income-tax Act, 2025 — retained and renumbered as Section 202 of the Income-tax Act, 2025. Retained. Employer must consider the 'New Tax Regime' as default unless employee opts out.
For Section 192, the practical impact is rated Critical. Affects every salaried individual and payroll department.
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 is Section 192 of the Income Tax Act, 1961 about?
Section 192 of the Income Tax Act, 1961 covers TDS on salary. Employer must deduct tax on salary based on the average rate of income tax of the employee.
Which section replaces Section 192 in the Income-tax Act, 2025?
Section 192 of the Income Tax Act, 1961 maps to Section 202 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Employer must consider the 'New Tax Regime' as default unless employee opts out.
What is the impact of the change to Section 192 under the new tax code?
The transition impact for Section 192 is rated Critical. Affects every salaried individual and payroll department.
What should I watch out for when Section 192 moves to the 2025 code?
Employers can now consider tax collected at source (TCS) of the employee while calculating TDS on salary to reduce excess deduction. These points are specific to Section 192 (TDS on Salary).
Disclaimer: This mapping of Section 192 (TDS on Salary) to Section 202 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 192 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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