This week: TDS on salary explained, June 15 advance tax deadline, and ITR filing is open
New article on TDS under Section 192 — how your employer calculates the monthly deduction and the job-switcher trap. Plus: advance tax first instalment is due June 15, and ITR filing for FY 2025-26 is now open with a July 31 deadline.
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What matters in personal finance this week — for salaried employees in India.
New this week: TDS on salary — how your employer actually calculates it
Most salaried employees know their employer deducts tax every month. Few understand the exact calculation, or why the deduction often changes mid-year without warning.
This week's article explains how Section 192 works: the employer estimates your annual income, computes tax, divides by months remaining, and deducts that each month. If you have not submitted investment declarations (Form 12BB), your employer assumes no deductions and over-deducts — sometimes by ₹5,000–₹15,000 per month.
The article also covers the job-switcher trap: when you join a new employer mid-year, they have no record of your previous salary. If you don't give them a breakdown of what you earned and what TDS was already deducted, you risk both over- and under-deduction — and a surprise tax bill when you file.
[Read: TDS on salary — how your employer calculates it and how to fix overpayment →](/tax/tds-on-salary-employer-calculation-overpayment-section-192)
One date to mark: advance tax instalment — June 15
The first advance tax instalment for FY 2026-27 is due June 15, 2026. The amount: 15% of your estimated annual tax liability.
Who this applies to: salaried employees whose tax liability after TDS exceeds ₹10,000 for the year. This typically means employees with income outside salary — FD interest, rental income, freelance earnings, or capital gains — that is not covered by employer TDS.
Missing this instalment attracts interest of 1% per month under Section 234C on the shortfall. It is small but avoidable.
How to estimate: take your total expected income this year (salary + other sources), compute the tax, subtract the TDS your employer will deduct over the year, and check if the remaining liability exceeds ₹10,000. If yes, pay 15% of that total liability by June 15.
[Full guide with worked example →](/tax/advance-tax-salaried-employees-fy-2025-26)
ITR filing is open — deadline July 31
The income tax portal (incometax.gov.in) is accepting returns for FY 2025-26 (AY 2026-27). The deadline for salaried employees without audit requirement is July 31, 2026.
Filing early — in June rather than July — has two practical benefits: refunds are processed faster (typically within 4–6 weeks for early filers), and if there is an error you have time to file a revised return before the deadline.
What you need before starting:
- Form 16 from your employer (must be issued by June 15)
- AIS downloaded from the income tax portal
- Details of any other income (FD interest, rental income, capital gains from mutual fund redemptions)
[Step-by-step ITR filing guide →](/tax/how-to-file-itr-salaried-employees-fy-2025-26)
One thing to do this week
Check your Form 26AS for Q4 (January–March 2026) TDS.
Log in at incometax.gov.in → e-File → Income Tax Returns → View AIS → click on "Tax Deducted at Source."
The Q4 TDS return from your employer should have been filed by May 31. If TDS from your January–March salary is missing from Form 26AS, your employer has either not filed the return or filed it with errors. This will affect your refund processing and may require your employer to file a correction. Identify it now — before you file your ITR.
Ek Crore covers personal finance for salaried employees in India. All articles are for informational purposes only — not financial or tax advice. Consult a SEBI-registered investment advisor or practising CA for decisions specific to your situation.
Content on Ek Crore is for educational purposes only. Nothing here is financial advice. Always consult a SEBI-registered advisor, CA, or qualified professional before making investment or tax decisions.