TDS on salary, Income-tax Act 2025 (TY 2026-27).
Salary TDS now runs under Section 392 of the Income-tax Act, 2025 (replacing the old Section 192). The default new-regime slabs are nil up to ₹4 lakh, then 5/10/15/20/25/30% in ₹4 lakh steps up to ₹24 lakh and above; a ₹75,000 standard deduction and a rebate of up to ₹60,000 (income up to ₹12 lakh) both apply.
Last verified 23 October 2026. research/payroll-india-2026.md (Income Tax Dept Section 202/392, IT Act 2025 s.19/s.156).
| Income slab | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Worth knowing
- Standard deduction: ₹75,000 under the new regime, ₹50,000 under the old.
- Rebate: new regime — tax fully rebated (up to ₹60,000) for total income up to ₹12 lakh, with marginal relief just above; old regime — up to ₹12,500 for income up to ₹5 lakh.
- Health and education cess: 4% of tax plus surcharge.
- Surcharge (old regime; new regime is capped at 25%): 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, 37% above ₹5 crore, with marginal relief.
- New forms replace the old ones: Form 130 (was Form 16, salary TDS certificate, by 15 June), Form 138 (was 24Q, quarterly statement), Form 124 (was 12BB, employee's declared investments), Form 122 (was 12B/12BAA, previous employer's income).
TDS on salary, Income-tax Act 2025 (TY 2026-27)
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Which regime applies by default?
The new regime, unless the employee declares the old regime.
When is TDS deposited?
Within 7 days after the month of deduction; the March deduction is due by 30 April.
See how Comriq People applies this.
Dated rules, read in words on every payslip, with a CA flag where something isn't confirmed yet.