# Section 192 – TDS on Salary
## 1. Who Deducts
- Deductor: Any person responsible for paying any income chargeable under the head 'Salaries'.
- Deductee: Individual employee (Resident or Non-Resident).
## 2. Threshold Limit
- Estimated salary in the F.Y. exceeds the Basic Exemption Limit (BEL).
- BEL depends on regime opted:
- Default Sec 115BAC regime considered unless employee declares otherwise.
## 3. Rate of TDS
- Average rate of income-tax = (Estimated tax on total income / Estimated total income) × 100.
- Includes surcharge and HEC because tax is on estimated total income.
## 4. Time of Deduction
- At the time of payment (NOT at the time of credit).
- This is one of the few sections where credit-stage deduction does not apply.
## 5. Special Rules
### (a) Partner of a Firm
- Salary paid by a firm to a partner is NOT taxable as 'Salaries' but as 'PGBP'.
- Therefore, TDS u/s 192 is NOT applicable on partner's remuneration. (May attract Sec 194T — separate provision.)
### (b) Employee can opt out
- Employees may give a declaration to the employer to compute TDS under the old regime; otherwise, default new regime u/s 115BAC applies.
## 6. Important Computational Aspects
- Employee may furnish details of income from other heads (other than loss, except house-property loss) and TDS already deducted from such income to enable proper computation.
- If employer makes wrong/short deduction, interest u/s 201(1A) applies.
## Quick Reference
```
Payer : Employer (any person)
Payee : Employee (individual)
Limit : BEL of the employee
Rate : Average rate of income-tax (incl. SC + HEC)
Time : At time of PAYMENT (not credit)
```