TDS whether uniformity of deduction must?

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C.A Alok Mukherjee (Querist)
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18 December 2009 Suppose mr. x an employee whose tax liability in the financial year 2009-10, calculated for rs Rs 12000. Income component is calculated based on projected salary upto march 10. Now, whether the employer is legally bound to deduct income tax uniformly in the balance month? In case, Mr X wants Rs 8000 deduction of tax From Nov to Jan 10 and balance Rs 4000 in march 10, can he opt such mode legally?

M Prabhakar Menon

M Prabhakar Menon (Expert)
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18 December 2009 The employer is required to deduct tax u/s 192 of the IT Act.If the tax deducted for the year falls short then the employer is answerable to the dept. Normally all employers try to collect data on all income of an employee including payments which are deductible during the course of the year to avoid shortfall in TDS +/- month to month is OK but how will u cover yourself if the said person quits without your knowledge

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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18 December 2009 Employer has to work on employee salary on which they have to deduct TDS u/s 192 if Salary is going to cross the Limit of IT Dept. and also in monthly mode but if you missed some month then u can adjust before year ends.
you have to divide tax by 12 and monthy deduction as on month till Nov ok
Excess Deduction is allowed but lover dedution is not allowed.
so you have to deduct min. till month

C.A Alok Mukherjee

C.A Alok Mukherjee (Querist)
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21 December 2009 Lower deduction mean monthly or a financial year? If it is financial year, i have no point to argue, but if it is for monthly can you refer the section or relevant provision, it's important.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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02 August 2025 Great question! Here’s a clear explanation about the **uniformity of TDS deduction under Section 192 (TDS on salary)**:

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### 1. **Legal Requirement for Deduction under Section 192**

* Under **Section 192**, the employer must deduct tax at source from salary payments **at the time of payment**.
* The employer estimates the total income of the employee for the financial year, calculates the total tax liability, and deducts TDS in **monthly installments** as salary is paid.

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### 2. **Is Uniform Monthly Deduction Mandatory?**

* The Income Tax Act does **not explicitly mandate equal/uniform monthly deduction** of TDS.
* What is important is that by the end of the financial year (or earlier if the employee leaves), the total TDS deducted should be **at least equal to the tax liability** based on projected income.
* Employers **can vary the amount of TDS deducted each month** based on estimated income projections and actual salary payments.

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### 3. **Adjusting TDS Deductions**

* Employers may deduct **lower TDS in some months and higher in others** to adjust for bonuses, increments, or changes in income.
* For example, if Mr. X wants Rs 8,000 deducted from November to January and Rs 4,000 in March, the employer can accommodate this, provided the total TDS by year-end matches or exceeds the tax liability.
* However, employers **should not deduct less than what is legally required** as per the estimated income, to avoid penalties for short deduction.

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### 4. **Risk of Non-Uniform or Lower Deduction**

* If the employer deducts **less TDS than required** and does not adjust later, they can be held **liable for the shortfall** including interest and penalties.
* For instance, if an employee leaves mid-year, and less TDS was deducted earlier, the employer cannot recover the balance TDS.

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### 5. **Summary**

| Point | Explanation |
| -------------------------------------- | ---------------------------------------------------------- |
| Uniform monthly deduction required? | No, monthly TDS deduction can vary. |
| Legal compliance criteria | Total TDS deducted should cover tax liability by year-end. |
| Employer liability | Employer liable for short deduction/late deduction. |
| Employee request for deduction pattern | Can be considered if overall tax liability is met. |

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### 6. **Relevant Rule/Section**

* Section 192 of Income Tax Act governs TDS on salary.
* Rule 26 of Income Tax Rules details calculation of TDS.
* No specific sub-section mandates **equal monthly deduction**, only total deduction by year-end is essential.

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### **In short:**

Your employer can **legally vary monthly TDS deductions** as long as total tax liability is met by year-end. Mr. X’s request to deduct Rs 8,000 over Nov-Jan and Rs 4,000 in March is **allowed**, provided total TDS equals tax due.

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If you want, I can also help you draft a policy or formula for monthly TDS deduction accommodating flexibility while complying with the law. Would that help?

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