• Notification Date: 12-12-2022
• Notification No: N/A

CBDT Issued Circular Regarding TDS from Salaries u/s 192 in FY 2022-23

The Central Board of Direct Taxes (CBDT) has recently issued Circular related to TDS from salaries under section 192 in FY 2022-23. In the circular, CBDT has thoroughly explained the obligations of employers with regard to deduction of tax at source from salaries under section 192 of the Income-tax Act, 1961 for the Financial Year 2022–23. 

The Circular Stated, “Reference is invited to Circular No. 04/2022 dated 15.03.2022 whereby the rates of deduction of income-tax from the payment of income under the head “Salaries” under Section 192 of the Income-tax Act, 1961 (hereinafter ‘the Act’), during the financial year 2021-22, were intimated. The present Circular contains the rates of deduction of Income-tax from the payment of income chargeable under the head “Salaries” during the financial year 2022-23 and explains certain related provisions of the Act and Income-tax Rules, 1962 (hereinafter the Rules). All the sections and rules referred are of Income-tax Act, 1961 and Income-tax Rules, 1962 respectively unless otherwise specified. The relevant Acts, Rules, Forms and Notifications are available at the website of the Income Tax Department- www.incometaxindia.gov.in.” 

According to Section 192(1) of the Act, an individual responsible for paying any income chargeable under the head “Salaries” shall, at the time of payment, deduct income-tax on the amount payable at the average rate of income-tax computed on the basis of the rates in force for the financial year in which the payment is made. The deduction has to be made on the estimated income of the assessee under the head of Salary income for that financial year. 

The section also highlights that a person who is responsible for paying any income chargeable under the head “Salaries” has to furnish to the person to whom such payment is made a statement giving correct and complete particulars of perquisites or profits in lieu of salary provided to him and the value thereof.