Form 24Q - TDS Return for Salary Payment

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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 DetailsProvide 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 DetailsYour 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.
**Annexure 2** Your employer has to file this section in the TDS return for salary form only in the last quarter (January to March). It contains more detailed information, such as:

"

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.

What is Form 24Q?

What is Form 24Q?

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Form 24Q is a quarterly TDS return filed by employers detailing the TDS deducted from employee salaries.

Who needs to file Form 24Q?

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Any employer who deducts TDS on salary payments must file Form 24Q.

Is Annexure II required for all quarters?

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No, Annexure II is only required in the last quarter (January to March).

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