192B TDS Section - As Per IT Act 2025

thanks for sharing the same. 

The renumbering from Section 192 to Section 392 is a structural change under the Income Tax Act 2025 consolidation. The functional TDS on salary rules are identical, only the section numbering changed.

KEY POINTS FOR AY 2026-27:

WHAT CHANGED (cosmetically only):
- Old Section 192 = New Section 392 under IT Act 2025
- Payment codes: Non-government employees still use code 92B; government employees use 92A
- Form 24Q (quarterly TDS return) and Form 16 remain the same forms

WHAT STAYS IDENTICAL:
- TDS threshold: estimated annual salary below basic exemption limit (Rs 2.5 lakh; Rs 3 lakh for senior citizens)
- Employer computes TDS using the regime the employee declares (new regime is default for AY 2026-27)
- Employee submits Form 12BB to employer for old-regime deductions (80C, HRA, 80D) to be factored in
- Form 16 Part A and Part B issued as before

PRACTICAL IMPACT:
If existing payroll software or salary slips still reference old section numbers, that is fine during the transition. Most major TDS software vendors have updated for the IT Act 2025 renumbering. Check your provider if you are doing your first ETDS return under the new section.

For employers, the leave encashment paid to departing employees is exempt under the new Act too, this [leave encashment tax guide](https://taxgarden.in/blog/leave-encashment-tax-rules-section-10-10aa-india-ay-2026-27) covers the exemption limits under Section 10(10AA) which affect TDS computation on full-and-final settlement payouts.