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Tax year 2026-27

Section 392 TDS: salary

Earlier Section 192 · Codes 1001–1004

From 1 April 2026, TDS on salary is deducted under Section 392 of the Income-tax Act, 2025, and reported in Form 138. It was earlier deducted under Section 192 of the Income-tax Act, 1961.

Calculating TDS under Section 392

TDS on salary depends on each employee's income at the slab rates, so it is not a fixed percentage of one payment. The complete TDS rate chart lists every payment.

Section 392 at a glance

PaymentNew sectionCodeRateThresholdOld section
Salary paid by an employer other than the Government3921002Slab ratesSalary above the basic exemption limit192
Salary of State Government and other non-Union Government employees3921001Slab ratesSalary above the basic exemption limit192
Salary of Union (Central) Government employees3921003Slab ratesSalary above the basic exemption limit192
Taxable payment of accumulated provident fund balance to an employee392(7)100410%As specified in the Act192A

Codes by employer

The section code depends on the employer: code 1002 for an employer other than the Government, code 1001 for State Government and other non-Union Government employees, and code 1003 for Union (Central) Government employees.

Rate

TDS on salary is deducted at the slab rates, where the salary exceeds the basic exemption limit.

Provident fund

The taxable payment of an employee's accumulated provident fund balance, earlier deducted under Section 192A, is now Section 392(7), code 1004, at 10%.

Rates are before any surcharge and cess. Lower-deduction certificates, payees without a PAN and other conditions in the Act can change the TDS. This page is a general guide, not tax advice: confirm with your CA or the sources below.

FAQ

Questions, answered

Salary paid by an employer other than the Government: Section 392 (code 1002). Salary of State Government and other non-Union Government employees: Section 392 (code 1001). Salary of Union (Central) Government employees: Section 392 (code 1003). Taxable payment of accumulated provident fund balance to an employee: Section 392(7) (code 1004). It was earlier Section 192 of the Income-tax Act, 1961.

Salary paid by an employer other than the Government: slab rates; salary of State Government and other non-Union Government employees: slab rates; salary of Union (Central) Government employees: slab rates; taxable payment of accumulated provident fund balance to an employee: 10%. Rates are before any surcharge and cess.

Salary paid by an employer other than the Government: salary above the basic exemption limit; salary of State Government and other non-Union Government employees: salary above the basic exemption limit; salary of Union (Central) Government employees: salary above the basic exemption limit; taxable payment of accumulated provident fund balance to an employee: as specified in the Act.

Other TDS sections

Section 393(1) Sl. No. 1(i)Code 1005 · Insurance commissionEarlier Section 194D Section 393(1) Sl. No. 1(ii)Code 1006 · Commission and brokerageEarlier Section 194H Section 393(1) Sl. No. 2(i)Form 141 · Rent paid by individualsEarlier Section 194IB Section 393(1) Sl. No. 2(ii)Codes 1008, 1009 · RentEarlier Section 194I Section 393(1) Sl. No. 3(i)Form 141 · Purchase of propertyEarlier Section 194IA Section 393(1) Sl. No. 5Codes 1020–1022 · Interest other than on securitiesEarlier Section 194A Section 393(1) Sl. No. 6(i)Codes 1023, 1024 · ContractorsEarlier Section 194C Section 393(1) Sl. No. 6(ii)Form 141 · Payments by individuals and HUFsEarlier Section 194M Section 393(1) Sl. No. 6(iii)Codes 1026–1028 · Professional and technical feesEarlier Section 194J Section 393(1) Sl. No. 8(ii)Code 1031 · Purchase of goodsEarlier Section 194Q Section 393(1) Sl. No. 8(iv)Codes 1033, 1034 · Business perquisitesEarlier Section 194R Section 393(1) Sl. No. 8(v)Code 1035 · E-commerce operatorsEarlier Section 194O Section 393(3) Sl. No. 5Codes 1064, 1065 · Cash withdrawalsEarlier Section 194N Section 393(3) Sl. No. 7Code 1067 · Payments to partnersEarlier Section 194T

Complete TDS rate chart for tax year 2026-27 →

Section 393 explained →   TDS section codes list →

Sources

Taken only from the Income Tax Department's official publications, as in force on 17 October 2026:

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