Form 24Q - TDS Return for Salary Payment
Start searching for stocks
Start searching for blogs
Start searching for circulars
Start searching for news
Start searching for articles
Become a Partner
Open Demat Account
Mutual Funds Saving Schemes Equity Funds Hybrid Funds Tax FD Interest Rates Aadhaar Card Stocks Debt Funds Capital Gains RD Interest Rates Pan Card IPO See more

Introduction

Form 24Q is a crucial tax-related document required by employers to report TDS (Tax Deducted at Source) on employee salaries. Filed quarterly, Form 24 Q provides detailed information on salary payments and TDS deductions, making it an essential part of an employer’s tax compliance. Every quarter, companies in India submit Form 24 Q to show the government the TDS deducted from salaries, which is then deposited with the authorities.

What is Form 24Q TDS?

Form 24 Q is a TDS return form that employers file every quarter to report tax deductions on salary under Section 192 of the Income Tax Act, 1961. This form documents the total salary paid to employees and the TDS deducted from their income. Every business with employees must complete Form 24 Q, ensuring compliance with tax deduction and declaration norms.

Components of Form 24Q

Form 24Q has two annexures, each serving a unique purpose:

  • Annexure I: Includes details about the deductor, challans, and deductees, such as branch BSR code, challan serial number, and TDS distribution among deductees.
  • Annexure II: Shows the salary breakdown and deductions for each employee. Annexure II is only filed in the fourth quarter, while Annexure I is filed every quarter.

How to File Form 24Q Online

Employers can download and submit Form 24 Q online, provided they have the required details like challan number, challan date, and PAN details of employees. Here’s a step-by-step guide to filing Form 24Q online:

  1. Download the TDS Utility: Visit the NSDL website and log in to download the TDS return preparation utility.
  2. Unzip the Utility File: After downloading, unzip the file to access the TDS form.
  3. Select Form 24Q: Open the utility, select Form 24 Q, choose the regular option, and continue.
  4. Enter Basic Information: Fill in essential details, including TAN, PAN, and financial year. For continuity, you must also reference the previous quarter’s filing.
  5. Provide Challan Details: Fill in the TDS payment details in the challan section, including TDS, surcharge, interest, and fees.
  6. Enter Deductee Information: List the employees’ details in Annexure I, including their PAN and TDS deducted.
  7. Annexure II Details: For the fourth quarter, fill in the salary details and deductions in Annexure II.
  8. Generate File and Validate: Click on “Create File” and validate the entries. Generate Form 27A and the FVU file.
  9. Submit Form 27A and FVU File: Take the signed Form 27A and FVU file to a TIN facilitation center to complete the submission.

You may also want to know Section 94A of Income Tax Act

Key Points for Filing Form 24Q

1. Mandatory e-Filing

E-filing is mandatory for:

  • Government officers
  • Businesses with audited accounts under Section 44AB
  • Company principal officers
  • Any employer with 20+ employees in any quarter of the financial year

2. Interest Rates for Late Payments

  • 1% per month: For delayed TDS deduction
  • 1.5% per month: For late TDS deposits to the government

3. Penalty for Late Filing

Section 234E mandates a penalty of Rs. 200 per day for late submission, which accumulates daily until it equals the TDS amount.

4. Form 24Q Filing Deadlines

  • April to June: July 31
  • July to September: October 31
  • October to December: January 31
  • January to March: May 31

Annexure Breakdown for Form 24Q

  • Annexure I: Filled every quarter, containing details on the deductor, challans, and deductees.
  • Annexure II: Filled only in the fourth quarter, providing salary breakup and allowed deductions.

Prerequisites for Filing Form 24Q

Before starting the filing process, gather the following:

  • Challan number, date, and amount
  • Employee PAN details
  • Additional income data (if applicable)

Significance of Form 24Q

Filing Form 24 Q is vital for companies to stay compliant with tax laws and avoid penalties. This form enables employers to report TDS deductions accurately, helping employees to claim tax benefits while filing their ITR. Correct filing of Form 24 Q helps in tracking all tax deductions, thereby facilitating transparency between employees, employers, and tax authorities.

Conclusion

Form 24Q plays a fundamental role in income tax compliance for employers, detailing every aspect of employee salary and TDS deductions. By adhering to deadlines and ensuring accuracy in filing, employers help their employees receive accurate tax credits and deductions. Keeping Form 24Q updated is essential for a transparent and seamless tax reporting system.

Frequently Asked Questions

Form 24Q is used by employers to report TDS deducted on employee salaries under Section 192. It is filed quarterly and helps employees receive tax credits.

Yes, employers meeting certain conditions must file Form 24Q online, especially if they have over 20 employees or audited accounts.

Key details include challan number, challan date, challan amount, employee PAN, and any other income information.

Employers should file on time (by quarterly deadlines) and ensure accuracy in all TDS deductions to avoid penalties under Section 234E.

No, only employers can file Form 24Q on behalf of their employees, as it pertains to TDS on salaries.

Explore our feature-rich web trading platform

Get the link to download the App

Download Jainam Mobile App
google play app store
trading_platform
qr-code