Last Updated: June 2026 — TDS on salary under Section 192 is deducted by employers at the time of payment, based on the employee’s estimated total income for FY 2025-26.
TDS on Salary – Section 192 (FY 2025-26)
There is no fixed TDS rate for salary. The employer deducts TDS based on the applicable income tax slab rates after considering the employee’s investments and deductions for the year.
| Income (New Regime) | Effective TDS Rate |
|---|---|
| Up to Rs. 12,75,000 (salaried) | Nil (after 87A rebate + standard deduction) |
| Rs. 12,75,001 – Rs. 16,00,000 | 15% |
| Rs. 16,00,001 – Rs. 20,00,000 | 20% |
| Rs. 20,00,001 – Rs. 24,00,000 | 25% |
| Above Rs. 24,00,000 | 30% |
Key Points for FY 2025-26
- Standard Deduction: Rs. 75,000 is automatically available to all salaried employees
- Default Regime: New Tax Regime is default — employees must declare if they want Old Regime
- Form 12BB: Submit investment declaration to your employer to reduce TDS
- Form 16: Must be issued by employer by 15 June 2026 for FY 2025-26
- Zero TDS: No TDS if estimated income after deductions is below exemption limit
How to Avoid Excess TDS on Salary
- Submit Form 12BB with all investment proofs to your employer early in the year
- Declare HRA, LTA, home loan interest, and 80C investments
- Choose the regime (New or Old) that gives lower tax — inform HR accordingly
- File your ITR by 31 July 2026 to claim refund of any excess TDS