TDS Form 24Q – TDS Return for Salary Payment

According to Section 192 of the Income Tax Act 1961, an employer deducts TDS while paying salary to an employee. An employer has to file salary TDS return in Form 24Q, which has to be submitted on a quarterly basis. Details of the salary paid to the employees and the TDS deducted from the payment has to be specified in Form 24Q. In other words, Form 24Q is the quarterly statement of the payment made to the employee and the TDS deducted from it by the deductor. In this article, we look at TDS Form 24Q in detail.

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Tax Deduction at Source

Tax Deduction at Source (TDS) is a system where tax is collected at the source of income. A person liable to pay tax (deductor) of any kind to any other person (deductee), gets the tax deducted at source and remits the payment to the account of the Central Government. The person from whom tax has been deducted is entitled to get a credit of the amount on the basis of Form 26 AS or TDS certificate that has been issued by the deductor.

Annexures

Form 24Q consists of two annexures namely Annexure I and Annexure II.

Annexure I

Annexure I contains details pertaining the deductor, challans and deductees. This annexure does not contain salary details. The annexure has to be filed and submitted for all four quarters of a financial year.

Challan details mentioned in Annexure I 

• BSR code of the branch
• Date of deposition of challan
• Challan serial number
• Total Amount in Challan
• TDS amount to be allocated among deductees
• Interest amount to be allocated among deductees

Deductee details mentioned in Annexure I 

• Employee reference number (if available)
• PAN of the employee
• Name of the employee
• TDS Section Code
• Date of payment/ credit
• Amount paid or credited
• TDS amount
• Education Cess

Annexure II

Annexure II contains salary details that need not be submitted during the first three-quarters but, only for the fourth quarter of every financial year along with the salary details of the employee for the complete financial year. This annexure covers all deductions that have to be claimed by the employee, income from other sources, house property and overall tax liability as calculated.

TDS on salary has to be deducted according to the income tax slabs. The employer has to consider all the deductions and investment of the employee.

Due Dates of 24Q

The due dates of 24Q are given below:

Online Submission of Form 24Q

It is made compulsory to submit the quarterly return online if the deductor is

• A government officer
• A company’s principal officer
• An assessee who has accounts audited for the previous year under Section 44AB of the Income Tax, 1961.
• If the record of deductees made in a statement is 20 or above during any quarter of a particular financial year.

Interest

• If TDS is not deducted – 1% interest is charged per month from the due date of deduction to actual date of deduction.
• If TDS is not deposited – 1.5% of interest is charged per month from the actual date of deduction to actual date of payment.

Filing Fee

As per Section 234E, for late filing, a fine of Rs. 200 per day will be charged until the return is filed. This amount has to be paid for each day until the total fine is equal to the TDS amount.

Penalty

According to Section 271H, besides the fee that is paid under Section 234E, AO may charge a penalty of minimum Rs. 10,000 to Rs. 1,00,000. However, there is no penalty for the following cases:

• If TDS is deposited to the government.
• If late filing fee and interest are deposited.
• If the return is filed before 1 year from the due date.