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The Central Board of Direct Taxes, a statutory authority under the Central Board of Revenue Act, 1963, issued a Circular on 7th December 2022 addressing the Deduction of Tax TDS on Salaries under Section 192 of the Income Tax Act, 1961, during the Financial Year 2022-23.
The Circular lists the income tax rates deducted from salaries during the financial year 2022–2023 and explains how the Income Tax Act of 1961 and the Income Tax Rules of 1962 work.
As per the Circular, the employee must now give his or her current or chosen employer written proof of the income under the “Salaries” heading due or received from the former or other employers, as well as the tax taken out at the source. This must be done by both the employee and the former or other employers.
Taxpayers can give details about income other than “salaries” and the tax taken from that income on a required form. But the employer can’t take loss claims into account unless it’s “Income from house property.”
The Circular also says at what rate the tax needs to be taken out. As it does every year, the CBDT has sent out a circular with instructions for employers on deducting income tax or TDS from employees’ salaries during the FY 2022-23 that are relevant for the AY 2023-24.
For a detailed reading of the Circular, click here.