Income Tax deduction from salaries during the Financial Year 2015-16 under section 192 of the Income-Tax Act, 1961

Income tax deduction from salaries: employers must deduct TDS for 2015 16 using prescribed rates, perquisite valuation and reporting rules.

Income-tax for FY 2015-16 must be deducted from salaries under Section 192 using Finance Act, 2015 slab rates, surcharge and education cesses; employers must estimate annual salary including perquisites, deduct tax each payment in equal instalments, adjust within year for errors, and may opt to pay tax on perquisites at the employee's average rate. Mandatory PAN/TAN quoting, issuance of Form 16 (Part A via TRACES, Part B manually), e-filing of Form 24Q and Form 24G for book-entry deposits, prescribed valuation of perquisites (Rule 3/Form 12BA), conditions for Chapter VI-A deductions, and interest, penalties and prosecution for defaults are detailed along with procedures for deposit and correction of TDS statements.