Tax
TDSTax Deducted at Source
TDS on salary is the income tax an employer deducts every month from an employee's pay, based on projected annual income, and deposits with the government on the employee's behalf.
Under Section 192 the employer estimates the year's taxable salary, subtracts declared deductions and exemptions, computes tax under the regime the employee chose, and deducts one-twelfth each month, adjusting as the estimate changes.
The tax is deposited by the 7th of the next month and reported quarterly in Form 24Q; Form 16 summarises it for the employee.
In Indian payroll
Since FY 2023-24 the new regime is the default; employees must opt into the old one. Proof verification in January and the March true-up are the two moments TDS most often surprises people.
What is TDS?
TDS on salary is the income tax an employer deducts every month from an employee's pay, based on projected annual income, and deposits with the government on the employee's behalf.
Why does TDS matter in Indian payroll?
Since FY 2023-24 the new regime is the default; employees must opt into the old one. Proof verification in January and the March true-up are the two moments TDS most often surprises people.
In Kuzhu
The Payroll module in Kuzhu is where TDS is handled, on the same employee record as everything else.
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