Income Tax: Danger in Deducting TDS from March Salary? Urgent Income Tax Guidelines for Teachers

Income Tax: Recently, a crucial topic regarding Income Tax or TDS has emerged in the state’s education sector. Specifically, a notice issued by the Office of the District Inspector of Schools (DI), Bankura, has drawn the attention of teachers and non-teaching staff. Although this directive originates from a specific district office, following these guidelines could be beneficial for teachers across the entire state to avoid annual complications related to income tax calculations.

Every year, towards the end of the fiscal year, many face unexpected issues while reconciling tax calculations or generating Form 16. To eliminate this confusion, an early warning has been issued for the 2025-26 fiscal year.

Why This New Guideline?

Maintaining transparency in the salary and tax deposit accounts of teachers and staff is essential. In the past, it has been frequently observed that deducting TDS from the March salary leads to significant discrepancies at the beginning of the next fiscal year or at the end of the current one. Sometimes, tax calculations are erroneously based on 11 months or 13 months instead of the standard 12 months. This guideline aims to avoid such administrative and technical glitches and to ensure a smooth income tax filing process.

Action Points for TDS Deduction

To ensure the Income Tax process for the 2025-26 fiscal year is completed smoothly, it is advisable to keep the following points in mind:

• Importance of January and February: You must clear the entirety or the remaining balance of your total payable Income Tax for the current fiscal year (2025-26) within the salaries of January and February. Essentially, do not leave the tax burden for the entire year pending for the last month.
• Keep March TDS-Free: The notification explicitly advises against deducting any TDS from the March salary. Deducting tax from March’s salary often creates complications in software or annual calculations. Neither the dues for the 2025-26 fiscal year nor any advance for the upcoming 2026-27 fiscal year should be deducted in March.
• Planning for the New Fiscal Year: TDS deduction for the upcoming fiscal year, i.e., 2026-27, should commence strictly from the salary of April 2026.

Freedom from Tax Hassles

Adhering to these rules can save you from unnecessary stress regarding tax calculations at the end of the year. Especially for those who deduct tax in March, discrepancies often arise due to system errors or the actual date of salary disbursement. Therefore, clearing all dues within January and February and keeping March free of TDS will make the process of filing Income Tax Returns or obtaining Form 16 from the DI office much simpler and error-free.