Answer

1. F

   Facts

   The most voluminous TDS in India, every employer deducts on estimated annual salary. Most errors in TDS happen here: wrong regime, missed deductions, dual employment.

2. P

   Provisions and law

   • Sec 392 (old 192)
   • Sec 392 (old 192(2))
   • Sec 392 (old 192(2B))
   • Sec 204, 201 (now 398)
3. A

   Analysis

   How salary TDS is computed: Step 1, Estimate gross salary for full year. Step 2, Add any other income declared by employee (Form 124, old Form 12BB). Step 3, Deduct loss from house property if declared. Step 4, Deduct allowances (HRA, LTA to extent exempt). Step 5, Deduct Sec 123/126, Income-tax Act 2025 (old Sec 80C/80D) etc. if old regime. Step 6, Compute tax on net income. Step 7, Divide by 12 months remaining = monthly TDS. Common employer errors: (1) Default to new regime without checking employee's declaration. (2) Not collecting Form 124 (old Form 12BB), missing HRA and home loan deductions. (3) Not aggregating other employer salary in job-switch year. (4) Not giving effect to Sec 392 (old Sec 192(2B)) house property loss declaration. Employee duty: Submit Form 124 (old Form 12BB) with proofs by February 28 each year. Declare other income/loss if applicable. If employer TDS seems wrong, check payslip and Form 130 (old Form 16) mid-year.

4. C

   Conclusion

   1. 1Employee submits Form 124 (old Form 12BB) by April (start of year), regime declaration, HRA, home loan, Sec 123 (old Sec 80C) estimate
   2. 2Employer updates payroll software with regime and deduction inputs
   3. 3Monthly TDS computed on estimated annual income, deducted each month
   4. 4If employee joins mid-year, collect Form 122 (old Form 12B; previous employer income) and aggregate
   5. 5TDS deposited via Challan 281 by 7th of next month (April 30 for March)
   6. 6Quarterly Form 138 (old Form 24Q) return filed: Q1 Jul 31 | Q2 Oct 31 | Q3 Jan 31 | Q4 May 31

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