TDS on salary under Section 192 is deducted by the employer based on the employee's estimated annual income and tax liability. For FY 2025-26 with Rs.15 lakh salary and Rs.2.25 lakh deductions: Old regime tax Rs.1,53,504 (monthly TDS Rs.12,792). New regime tax Rs.97,500 (monthly TDS Rs.8,125). New regime saves Rs.56,004 annually for this salary level. Employee must declare regime choice to employer at the start of the year. TDS is deducted in equal monthly instalments after accounting for standard deduction of Rs.75,000.
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