New TDS deduction circular published: TDS deduction in salary is now covered by a new circular; read it right away.

New TDS deduction circular published: TDS deduction in salary is now covered by a new circular; read it right away.

Salary TDS deduction: The CBDT published the circular last week. It outlines how employers are responsible for withholding tax at source from employee salaries in accordance with section 192 of the Income Tax Act of 1961 for the fiscal year 2022–2023.


The Central Board of Direct Taxes (CBDT) has published a circular governing the deduction of TDS from salaries. (Tax) must be subtracted. According to news agency IANS, tax should be withheld at the average rate determined using the rates in effect for the current fiscal year on the income (income) from the recipient's anticipated wage for that year.

The circular outlines employers' obligations.
The CBDT reportedly released the circular last week, according to the news. It outlines how employers are responsible for withholding tax at source from employee salaries in accordance with section 192 of the Income Tax Act of 1961 for the fiscal year 2022–2023. According to section 192, the person in charge of paying salary income shall give the payer with a statement that accurately and completely describes the perquisite or benefit received in exchange of compensation.


How much monthly TDS on average must be deposited
For example, if a person earns Rs. 6,00,000 in pay year, the tax on the complete wage, including the cess, equals Rs. 33,800 at the standard rate. It costs Rs 2,815 to calculate taxes on Rs 50,000 using the average tax rate of 5.63 percent. This means that TDS of Rs 235 must be subtracted from this sum each month.


average income tax rate
At the moment, there is no income tax on income up to Rs 2.50 lakh per year. On income between Rs 2.50 lakh and Rs 5 lakh, 5% income tax is due. On income between Rs. 5 lakh and Rs. 7.50 lakh, there is a 10% tax. 15% of annual income between Rs 7,50,001 and Rs 10 lakh, 20% between Rs 10,00,001 and Rs 12.50 lakh, 25% between Rs 12,50,001 and Rs 15 lakh, and 30% of annual income beyond Rs 15 lakh must be paid in income tax.