The Central Board of Direct Taxes (CBDT) has released a circular detailing the guidelines for Tax Deducted at Source (TDS) on salaries for the financial year 2024-25, under Section 192 of the Income-tax Act, 1961. This circular incorporates amendments introduced through the Finance (No. 2) Act, 2024, Finance (No. 1) Act, 2024, and the Finance Act, 2023, specifying the applicable income tax deduction rates for salary payments. In cases where no amendments have been made, the provisions outlined in Circular No. 24/2022, which applied to FY 2022-23, will continue to be in force. The circular also reiterates the definition of “salary” under Section 15 of the Act and its further explanation under Section 17.

One of the key amendments, introduced through the Finance Act, 2023, includes the contribution made by the Central Government to the Agniveer Corpus Fund for individuals enrolled in the Agnipath Scheme, as specified under Section 80CCH. Boost Your Business with SME IPO Funding Strategies – Enroll Now CBDT has clarified that the circular serves as a guideline for employers and is not exhaustive.

Employers are advised to refer to the relevant provisions of the Income-tax Act, Income-tax Rules, Finance Acts, and other official notifications in case of any doubts. For further assistance, employers and taxpayers may contact their Assessing Officer or the Local Public Relations Officer of the Income Tax Department. Additionally, all Disbursing Officers and Undertakings under the Central and State Governments have been instructed to take note of these directives. To Read the full text of the Circular CLICK HERE