The Statutory Brief

IT Act 1961 → 2025 / Section 192

TDS

Section 192 → Section 392

TDS on salary (and on withdrawal of accumulated PF balance)

Section 192 of the old Income-tax Act, 1961 · new section 392 under the Income-tax Act, 2025

New reference Section 392 (192A → 392(7))

Income-tax Act, 1961Section 192

  • Employer deducts at the average rate on estimated salary income for the year
  • Option for employer to pay tax on non-monetary perquisites
  • Employee can declare other income and losses to the employer
  • Accumulated EPF balance withdrawals: section 192A

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 392 (192A → 392(7))

  • Same framework, now section 392
  • Average-rate method retained (392(1))
  • Employer-paid tax on non-monetary perquisites retained (392(2))
  • Old 192A (accumulated PF balance) is section 392(7)

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Renumbered, and the PF withdrawal provision merged into the same section. Mechanism unchanged.

Practice notes

  • Salary paid from April 2026 is reported under section 392 in TDS returns.
  • Employees still choose old or new regime with the employer each year.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

What is section 192 called in the new Income-tax Act, 2025?

Section 192 of the Income-tax Act, 1961 corresponds to Section 392 (192A → 392(7)) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 192 under the new Income Tax Act?

Renumbered, and the PF withdrawal provision merged into the same section. Mechanism unchanged.

Is section 192 still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 192 of the 1961 Act. Section 392 (192A → 392(7)) of the 2025 Act applies from tax year 2026-27.

Related sections

115BAC→202New tax regime (default) for individuals, HUFs, AOPs, BOIs and artificial juridical persons87A→156Rebate of income-tax for resident individuals with lower income80C→123Deduction for life insurance, PF, PPF, ELSS, tuition fees, home-loan principal and other specified savings