Form 24Q - TDS Return for Salary Payment
Form 24Q - TDS Return for Salary Payment
Income tax can be complex for some taxpayers. Not only are there countless sections and subsections, but there are also different forms as well.
Each of these forms serves a different purpose, and if you are not aware of them, you are likely to pay the wrong returns and attract penalties.
One of the many crucial forms is Form 24Q, i.e. the TDS form for salary.
But what purpose does this 24Q TDS form serve, and what is its format? We will discuss all of this in this article.
What is Form 24Q?
TDS return Form 24Q is a document your employer files with the Income Tax Department every quarter. It mentions the TDS (Tax Deducted at Source) from your salary under Section 192 of the Income Tax Act.
This form ensures that the taxes you owe on your earnings are collected and deposited by your employer on your behalf.
This form can be used at the end of the financial year to reconcile your taxes and submit your returns without errors.
Format of Form 24Q
This TDS form for salary is divided into two parts: Annexure 1 and Annexure 2. Let us understand them in detail.
Annexure 1
Parameters | Description |
---|---|
Challan Details | "Provide the serial number of the challan The BSR code of the bank branch The date of deposit TDS amount and interest allocated between the employees. | "
Deductee Details | "Your employer must provide: Employee reference number (if available) The name and PAN of the employee Payment date, the amount paid, and the TDS section code | "
Education Cess | If applicable, you must report the education cess amount deducted. |
Parameters | Description |
---|---|
Exempt Income Under Section 10 | Exempt income includes:
Travel concession
Gratuity, pension
Leave salary encashment
House rent allowance, and others.
Remember to include the PAN of the landlord if claiming exemption under section 10(13A). | "
Section-wise Disclosure of Deductions Under Chapter VI-A | Furnishing tax benefits under the following sections are mandatory: 80C 80CCC 80CCD 80CCE 80D 80DD 80DDB 80E 80G 80GG 80GGA 80GGC 80IA 80IB 80JJAA 80P 80RRB 80TTA 80U |
Rebate Under Section 87A | If applicable, mention the rebate amount. |
Standard Deduction | As introduced by the Finance Act 2018, you must include the standard deduction amount under section 16(ia). |
Note: Annexure 2 also requires you to furnish additional information such as:
Gross Salary: As per section 17(1), report the gross salary amount.
Value of Perquisites: Under section 17(2), include the value of perquisites provided to the employee.
Profits in Lieu of Salary: Considering the provisions of section 17(3), mention any profits in place of salary.
What is Form 24Q Due Date?
Your employer must file the 24Q TDS Form within the following bracket:
31st July for April to June
31st October for July to September
31st January for October to December
31st May for January to March
What is the TDS Section Code Under Form 24Q?
The three TDS section codes under TDS return form 24Q are:
Section Code | Description |
---|---|
192A | This applies to remuneration paid to government employees, excluding those employed by the Union Government. This also applies to TDS on premature withdrawal from EPF. It mandates tax deduction at source if you, as an employee, withdraw from your EPF account before completing five years of service and the amount exceeds ₹50,000. |
192B | It applies to TDS on salary payments to non-government employees. The deduction occurs during actual salary payment, whether in advance, on time, or in arrears. No TDS is deducted if the estimated salary is not above the basic exemption limit. |
192C | It pertains to TDS on salaries paid to union government employees. |
What are the Fees And Penalty Associated With the Form 24Q?
In case of non-filing or delayed filing of Form 24Q, the employer may face the following consequences.
Interest
If TDS is not deducted, the interest rate is 1% per month from the scheduled date of deduction to the actual deduction date.
If TDS is not deposited, the interest rate is 1.5% per month from the actual deduction date to the actual payment date.
Late Filing Fees
- Under Section 234E, a fine of ₹200 per day is applicable until the return is filed. This amount accumulates daily until it equals the total TDS amount.
Penalty under Section 271H
In addition to the late filing fees, the Assessing Officer (AO) may impose a penalty.
The minimum penalty is ₹10,000, and the maximum is ₹ 1,00,000.
However, no penalty is levied under 271H if:
TDS is paid to the government.
Late submission charges and interest (if any) are also deposited.
The return is submitted a year before the expiration date from the due date.
How to File Form 24Q?
Assume yourself as an employer. You now have to adhere to the following steps for filing the 24Q income tax form.
Step 1: Things Required to File Form 24Q
PAN of the Employee
Challan Amount
Challan Date
Challan Number
Income Details
Step 2: Download the TDS Utility
Visit the Protean website.
Click on ‘Services’ → ‘E-TDS/E-TCS’.
Select ‘e-TDS/e-TCS RPU’ to download the TDS utility.
Step 3: Download RPU Utility
Download the e-TDS/e-TCS Return Preparation Utility (RPU) from the list.
The RPU facilitates the preparation of e-TDS returns, as well as both regular and correction statements.
Step 4: Open the RPU Tool
Install the RPU tool on your computer.
Use it to prepare your Form 24Q statement.
Step 5: Choose the Form
Decide between Annexure I and Annexure II.
Share relevant details.
Step 6: Save Details & Create File
Save the details entered in the RPU.
Create the TDS return file for Form 24Q.
Choose a suitable location to save the generated TDS statement file on your computer.
Step 7: Verify
Before submission, verify the details in the statement.
Ensure truthfulness and compliance with the defined format.
Submit the TDS return within the due dates for each quarter.
Conclusion
Understanding Form 24Q is essential for managing your taxes accurately. This form, filed quarterly by your employer, ensures that the taxes deducted from your salary are deposited correctly with the Income Tax Department.
Tax-Saving with a Health Insurance Plan
When filing returns, pay double attention to the available sections for tax deductions, such as Section 80D.
Section 80D provides a deduction on premiums when you buy health insurance online or offline. A health insurance plan reimburses for medical treatment bills, OPD charges, prescription fees, ambulance expenses, and more.
If you do not have enough funds to pay the bills during a medical crisis, you can utilise Tata AIG medical insurance by getting hospitalised at the insurer’s network hospital.
Also Read: Cashless Insurance
Disclaimer / TnC
Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.