TDS on Salary & Form 16 Compliance Hub
Master TDS compliance under Section 192 with updated FY 2025-26 tax slabs, quarterly filing deadlines, Form 16 generation, and automated tax computation for both old and new regimes.
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TDS Compliance Dashboard
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Income Tax Slab Rates for FY 2025-26
Income Tax Slab Rates for FY 2025-26
| Income Slab (New Regime) | New Regime Rate | Income Slab (Old Regime) |
|---|---|---|
| Up to ₹4,00,000 | Nil | Up to ₹2,50,000 |
| ₹4,00,001 - ₹8,00,000 | 5% | ₹2,50,001 - ₹5,00,000 |
| ₹8,00,001 - ₹12,00,000 | 10% | ₹5,00,001 - ₹10,00,000 |
| ₹12,00,001 - ₹16,00,000 | 15% | Above ₹10,00,000 |
| ₹16,00,001 - ₹20,00,000 | 20% | Standard Deduction |
| ₹20,00,001 - ₹24,00,000 | 25% | Section 80C Limit |
| Above ₹24,00,000 | 30% | Section 80D (Self) |
| Standard Deduction | ₹75,000 | HRA Exemption |
| Rebate u/s 87A (up to ₹12L) | Full tax rebate | Rebate u/s 87A (up to ₹5L) |
TDS Calculation Example (New Regime FY 2025-26)
Employee with annual CTC of ₹12,00,000 (gross salary ₹10,50,000 after employer PF)
Under Section 87A, income up to ₹12,00,000 (after standard deduction) gets full rebate — so effective tax is ₹0 for this employee. This example shows the calculation before rebate.
TDS Filing & Payment Deadlines
TDS Filing & Payment Deadlines
| Obligation | Quarter / Period | Deadline |
|---|---|---|
| Monthly TDS Deposit | Each month | 7th of following month |
| Form 24Q - Q1 | April - June | 31st July |
| Form 24Q - Q2 | July - September | 31st October |
| Form 24Q - Q3 | October - December | 31st January |
| Form 24Q - Q4 | January - March | 31st May |
| Form 16 Issuance | Full Financial Year | 15th June |
| TDS March (Govt deductors) | March | 7th April |
Understanding TDS on Salary in Detail
Section 192: TDS on Salary
Under Section 192 of the Income Tax Act, every employer paying salary is required to deduct tax at source at the time of payment. The employer must estimate the employee's total annual income from salary, allow applicable deductions and exemptions, and deduct TDS proportionately each month. The employer is also required to consider income from other sources if the employee furnishes details under Section 192(2B).
New vs. Old Tax Regime
From FY 2023-24, the new tax regime is the default regime. Employees must explicitly opt for the old regime if they wish to claim deductions under Sections 80C, 80D, HRA exemption, etc. Under the new regime for FY 2025-26, income up to ₹12 lakh is effectively tax-free (₹12.75 lakh with standard deduction of ₹75,000) thanks to the Section 87A rebate. The new regime offers significantly lower slab rates but disallows most exemptions and deductions.
Investment Proof Verification
Employers typically collect provisional investment declarations at the start of the financial year and actual proofs between January and March. The employer must verify the proofs before considering them for TDS computation. Common proofs include: LIC premium receipts, PPF passbook, home loan interest certificates, rent receipts for HRA, medical insurance premium receipts (80D), and NPS contribution statements (80CCD).
Form 16: Parts A and B
Form 16 consists of two parts. Part A is generated from TRACES after successful filing of Form 24Q and contains details of TDS deducted and deposited. Part B is an annexure prepared by the employer containing the detailed salary breakup, perquisites, deductions claimed, and the complete tax computation. Both parts must be issued to employees by 15th June.
Key Changes in FY 2025-26
Budget 2025 revised the new regime slabs, raising the basic exemption to ₹4 lakh and extending the Section 87A rebate to cover income up to ₹12 lakh. The standard deduction under the new regime was increased to ₹75,000 (from ₹50,000 previously). Employers must update their TDS computation systems to reflect these changes from April 2025. The new slabs make the new regime more attractive for employees earning up to ₹12-15 lakh annually.
TDS Compliance Process
Collect Declarations & Compute Tax
At the start of the year, collect employee investment declarations (80C, 80D, HRA, etc.) and regime choice. Estimate annual income and compute monthly TDS. Re-compute when actuals change.
Kiework provides an employee self-service portal for declarations. Auto-computes TDS under both regimes and applies the employee's chosen regime.
Monthly TDS Deduction & Deposit
Deduct computed TDS from monthly salary and deposit to the government via Challan 281 by the 7th of the following month. Generate Form 26AS-compatible payment records.
TDS auto-deducted during payroll. Challan 281 generated with correct BSR codes. Payment reminders ensure no deadline misses.
Quarterly Return Filing (24Q)
File Form 24Q each quarter with employee-wise salary and TDS details. Q4 return includes annexures with full-year computation for each employee.
One-click Form 24Q generation in FVU-compliant format. Auto-validates PAN, TAN, and challan details before filing.
Form 16 Generation & Distribution
After Q4 filing and TRACES processing, download Part A from TRACES and generate Part B with salary breakup, deductions, and tax computation. Issue to all employees by 15th June.
Automated Form 16 generation combining TRACES Part A with Kiework-computed Part B. Bulk distribution via employee portal.
TDS FAQ
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Automate TDS Compliance
Stop managing TDS on Salary & Form 16 manually. Kiework automates calculations, filing deadlines, and compliance validation — so you never miss a deadline.