SECTION 192 AND SECTION 15

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Sowmya (Querist)
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26 October 2024 Sir/Madam, I have a small doubt regarding section 192 TDS on salaries and section 15. Salary head charging section..

u/s.192 TDS on salary need to deduct by employer at the time of payment of salary for example if april-2023 month salary paid in 2-may-2023 then tds need to deposit to government by 7th of june-2023 both for government employees and non government employees. like same march-2024 month salary paid in april-2024 we need to deposit the tds in may-2024 that means salary related to fy.2023-24 but the same is reflected in fy.2024-25 to the extent of march-2024 salary.

But sec.15 says tax need to pay on salary due or receipt basis which ever is earlier.

Based on above there is conflict between sec.192 and sec.15 as under sec.192 we are getting salary details on our form 26as from march 2023 to february-2024 but based on sec.15 we have to pay tax on salary earned from april-2023 to march-2024.

Can you please clarify my above doubt as sec.192 wording are like this.......income-tax computed on the basis of the rates in force for the financial year in which the payment is made, on the estimated income of the assessee under this head for that financial year.

Thanks in advance

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 October 2024 You are correct..
while TDS is deducted on a payment basis as per Section 192, the total salary earned should be reported according to the due or receipt basis under Section 15. Both sections serve their purposes without conflict:

TDS will be reflected based on when salary is paid (May 2023 for April 2023 salary).
The total salary for the financial year is reported in your income tax return based on the actual salary accrued from April 2023 to March 2024.
There is no conflict, because while TDS is deducted at the time of payment (as per Section 192), for tax reporting (as per Section 15), you include all salary earned for the financial year 2023-24 in your income tax return. It’s essential to ensure that your Form 26AS reflects the TDS as deducted, even if it pertains to salary for the previous month’s work.
N.B. Generally, if March months' salaries are near about same, there is hardly any difference between ITR file & form 26AS figures.