TDS on salary for employers
TDS on salary for employers
Tax deducted at source on salary: estimating yearly tax, the new and old regimes, monthly deposit, quarterly returns and the yearly certificate for employees.
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MonthlyDeduct and deposit each month
New regimeDefault, unless the employee chooses old
QuarterlyTDS return for salaries
How it works
An employer estimates each employee's tax for the year and deducts it in equal parts from monthly salary. The new tax regime applies by default; an employee can choose the old regime to claim deductions such as HRA and investments.
What employers do
- Collect each employee's regime choice and investment declarations early in the year, and proofs before the last quarter.
- Deposit the tax deducted by the 7th of the following month (March's by 30 April).
- File the quarterly TDS return for salaries and give each employee their yearly tax certificate.
- Include previous-employer income for mid-year joiners.
Note on the new Income-tax Act
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026, and some section numbers and form names changed. Check the current names with your CA.
Free tools for this
Do it in USR One. USR HRMS runs leave and attendance, and USR Payroll (add-on, India, by invitation) handles PF, ESI, PT, LWF and TDS on salary on the same employee record. Payroll software · USR HRMS