CBDT issues circular on TDS from salaries for Financial Year 2022-23

Circular No. 24/2022, dated 07-12-2022

The Central Board of Direct Taxes (CBDT) has issued a circular for the deduction of tax at source from salaries. CBDT has explained the obligation of employers with regard to the deduction of tax at source from salaries under section 192 of the Income-tax Act, 1961 for the Financial Year 2022-23 in a comprehensive manner.

As per section 192, any person responsible for paying salary income must deduct income tax at the time of payment. The tax should be deducted at the average rate, calculated based on the rates in force for the current financial year, on the estimated salary income of the recipient for that year.

Section 192 also states that the person responsible for paying salary income must provide the recipient with a statement giving correct and complete particulars of perquisites or profits in lieu of salary provided to him and the value thereof.

This circular contains guidance for tax deduction at source on salaried payable to employees considering the various provisions of the Income-tax Act.

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