India Tax Agency Issues Circular Clarifying Provisions of TDS on Salary for FY 2024-25

The Indian Central Board of Direct Taxes Feb. 20 issued Circular No. 3/2025, clarifying provisions of the tax deducted at source (TDS) on salary for the financial year 2024-25. The circular includes: 1) the definition and scope of salary, perquisites, and surcharge; 2) income tax rates; 3) the tax deduction from salary income during FY 2024-25, the method of calculation, the tax on perquisites, the computation of the average tax and other income, and other related information; 4) the preparation of the certificate for the tax deducted; 5) details about the penalties and prosecution for TDS defaults; and 6) other ...