Form 24Q - TDS on Salary Payment

Hello in this post we will give insights into the Form 24Q ie, TDS return on salary payment.

We will cover the following topics in this post:

What is Form 24Q?

As per Section 192 of the IT Act, an employer will deduct TDS at the time of paying salary to an employee. TDS on salary is deducted as per the income tax slab rate. The employer considers all deductions and investments of the employee (if proofs are submitted).

The employer (companies and firms) needs to file TDS Form 24Q for TDS deduction and submit it quarterly. It should contain the details of the salary paid as well as the TDS deducted.

Annexure I and Annexure-II in Form 24Q

TDS Form 24Q contains 2 Annexures and they are Annexure I and Annexure-II.

Annexure I gives you details about the deductor, challans and deductees. It also provides you with the deductee wise break up of TDS for each challan. Therefore, if the employer does not deduct TDS or deducts TDS at a lower rate, then they need to provide the reasons for it.

Annexure-II gives you an overview of the employee’s total breakup of the salary, deductions to be claimed, income from other sources, and house property and overall tax liability as per the calculation.

You need to submit Annexure I for all the 4 quarters of an FY. However, the submission of Annexure-II will only happen in the last quarter (Jan – Mar).

Requirements for filing Form 24Q

For deduction of TDS and filing Form 24Q you need TAN (Tax deduction Account Number)

The other requirements you will need are:

Challan details

  • The Challan Number
  • Challan Date
  • Challan Amount

Employee Details

  • Employee’s PAN
  • Other income details

Due date

QUARTER DUE DATE
April to June 31st of July
July to September 31st of October
October to December 31st of January
January to March 31st of May

Penalty and interest of late filing

The different types of penalty and interest are:

  • Late filing fee – This will be applicable if you do not file Form 24Q on time.
  • Interest -This is applicable if you do not deposit the TDS amount on time.
  • Penalty – This is applicable if the Form is not filed within 1 year of the due date.

Interest rate

Particulars Interest Rate
If not DEDUCTED 1% per month/ part of the month from the deduction due date to actual date of deduction
If not DEPOSITED 1.5% per month/part of the month from the actual deduction date to the date of payment

Penalty

Section Minimum penalty Maximum Penalty
Late filing of 24Q
(Penalty u/s 234E)
200 per day until the filing of return The maximum penalty can be equal to the amount of TDS deducted
Non- filing of 24Q
Penalty u/s 271H
Rs.10,000 1 lakh

NOTE: There will be no penalty under 271H if:

  • You deposit TDS to the government
  • Late filing fees and interest is also deposited
  • Return is filed before the expiry of 1 year from the due date

Format of TDS Form 24Q

Two important points to note while preparing Form 24Q are:

  • You must prepare your e-TDS/e-TCS return only in an ASCII format.
  • The file extension for the e-return should be ‘.txt’.

You can prepare your e-TDS/e-TCS return using any TDS preparation software or the NSDL e-TDS Return Preparation Utility.

See the government-approved format here – Form 24Q

Once you create the file according to the approved format, you need to validate it. You can validate Form 24Q using the File Validation Utility (FVU), an NSDL e-Gov /platform.

If the Form has any mistakes, then FVU will provide you with the report containing those mistakes. You can correct those mistakes and re-verify it. You must furnish the error-free file and validate it using the FVU to the TIN-FC.

With that, we have come to an end of this post on Form 24Q – TDS on salary payment.

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