For Indian employers, deducting and depositing **TDS on salary** correctly is a core compliance responsibility. With changes in slabs and default regimes, payroll teams must be careful.
This checklist focuses on practical steps for TDS on salary under the new regime.
Collect declarations and regime choice
Employers should:
- Obtain tax regime declarations from employees within prescribed timelines
- Collect information on other income and eligible deductions where relevant
While employers are not required to verify every detail, having declarations on record supports the TDS position.
Compute taxable salary correctly
Key points:
- Include all components: basic, allowances, perquisites, bonuses, ESOP exercises, etc.
- Apply exemptions and deductions correctly (for example, HRA, standard deduction), depending on the chosen regime.
- Consider relief provisions where applicable.
Errors here can trigger employee grievances and departmental queries.
Deduct and deposit TDS on time
- Deduct TDS each month based on estimated annual income.
- Deposit TDS within due dates to avoid interest and penalties.
- File quarterly TDS returns correctly and issue Form 16 on time.
Use checklists and calendar reminders—TDS non‑compliance can be expensive.
A periodic review of payroll processes with a tax professional can help employers stay updated with changes and avoid surprises.
