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What is Form 24Q

Introduction

At the time of paying salary to an employee, the employer deducts TDS u/s 192. The employer has to file salary TDS return in Form 24Q. 24Q is to be submitted on a quarterly basis.  Details of salary paid to the employees and TDS deducted on such payment is to be reported in 24Q.

What should I know about Form 24Q?

  • It is used for preparing eTDS returns for the TDS deducted on salary under Section 192 of the Income Tax Act, 1961.
  • It has to be submitted on a quarterly basis by the deductor.
  • It contains details like salaries paid and the TDS deducted of the employees by the employer.
  • It contains 2 annexures namely Annexure-I and Annexure II. Annexure-I contains details of the deductor, deductees and challans, while Annexure II contains the salary details of the deductees.
  • Annexure-I is to be submitted by the deductor for all the four quarters of the financial year.
  • Annexure II need not be submitted in the first three quarters of the financial year, but has to be furnished and submitted in the fourth quarter of the financial year with details of the employees’ salaries of the entire financial year.
  • TDS on salary has to be deducted as per income tax slab. The employer has to consider all deductions and investments of the employee (if proofs of such investments are submitted).

What does Form 24Q Consist?

24Q consists of 2 annexures – Annexure I and Annexure II.

Annexure I – has to be submitted for all four quarters of an FY

Annexure II – is not required to be submitted for the first three quarters. Annexure II has to be submitted in the last quarter (Jan – Mar) only.

What is Annexure I of 24Q?

Annexure I shows deductee wise break up of TDS against each particular challan.

Details of challan(s) to be mentioned in Annexure I

  • BSR code of 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

Details of deductee(s) to be 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

Besides, if the employer doesn’t deduct TDS or deducts TDS at a lower rate, he’ll have to provide the reasons for such non-deduction or lower deduction.

What TDS Section Code does it fall under?

192A – Salary paid to govt. employees other than union govt. employees

192B – Salary paid to non-government employees

192C – Salary paid to union govt. employees

What is Annexure II of 24Q?

Annexure II consists of a total breakup of the salary, any deductions to be claimed by the employee, his income from other sources, and house property and overall tax liability as calculated.

What is the Due Dates of 24Q?

Quarter Due Date
April to June 31st July
July to September 31st Oct
October to December 31st Jan
January to March 31st May

 

Fees/ Interest/ Penalties attached with 24Q

Interest:

  • If TDS not deducted – 1% per month, from due date of deduction to actual date of deduction,
  • If TDS not deposited – 1.5% per month, from actual date of deduction to actual date of payment
  • Late Filing Fees – under section 234E, a fine of Rs. 200 per day is to be paid until the return is filed. This amount has to be paid for each day until total fine becomes equal to the TDS amount.
  • The penalty under 271H – In addition to fees to be paid under 234E, AO may charge the penalty of minimum Rs. 10,000 and maximum Rs. 1,00,000.

No penalty will be charged under 271H if –

  • TDS is deposited to the government
  • Late filing fees and interest (if any) is also deposited
  • Return is filed before expiry of 1 year from due date

Other things to confirm while working on Form 24Q

  • Verify all the PAN numbers
  • Verify the challans, and try to match them through OLTAS or NSDL
  • Signed Form-27A is to be filed with the TDS return

Find Your 24Q Form here: Form_24Q