TDS RETURN FORM 24Q
Form 24Q- TDS Return On Salary Payment
Employers have several responsibilities towards their employees who are working for their organization. One specific task is deducting a portion of an employee's salary for income tax, known as Tax Deducted at Source (TDS). To do this properly, employers need to fill out a form called Form 24Q.
What is Form 24Q?
Form 24Q is a specific type of TDS (Tax Deducted at Source) return form used in India. It is instrumental in reporting critical details related to salary payments and the TDS deductions from employee salaries. Now the question arises: Who can deduct TDS on salaries?
TDS is deducted by employers who make salary payments to their employees. However, if the employee's total income is up to Rs. 5,00,000/-, TDS is not required to be deducted.
Specifically, the below entities are liable to deduct TDS on salaries:
Companies and Organizations
Private companies, government organizations, non-profit entities, and other institutions are responsible for deducting the TDS from the salaries they pay to their employees.
Sometimes, individuals who are not employers but pay employees or professionals can also be responsible for deducting TDS on salaries.
HUFs (Hindu Undivided Families)
Hindu Undivided Families (HUFs), if they have individuals on their payroll and make salary payments to them.
Partnership firms that have employees on their payroll are also obligated to deduct TDS.
What Is The TDS Rate On Salary?
More than 10,00,000
More than 5,00,000 but less than 10,00,000
More than 2,50,000 but less than 5,00,000
Less than 2,50,000
Essentials For Filling Form 24Q
Details of Challan:
Details of Employee:
Other Important Income details
Form 24Q Classification
This section of Form 24Q contains the deductor, deductees, and challan details. Annexure I is filed for all four quarters of the financial year.
Contents: Annexure I
Branch’s BSR code
The total amount of TDS that needs to be distributed among the deductees.
Employee reference number (if available)
PAN (Permanent Account Number)
TDS section code
EC (Education Cess)
Annexure II provides a comprehensive breakdown of an employee's salary, including details of any deductions that the employee can claim. It must be furnished and submitted in the financial year's fourth quarter (i.e., January to March).
Interest Rates On Form 24Q
As per Section 201 of the Income Tax Act of 1961, below are the interest rates applicable for late deposit of TDS on salary.
If an employer fails to deduct TDS on salary, they may be liable to pay interest at 1% per month from the deduction date to the due date.
If the TDS is deducted but not deposited on time, the employer may be liable to pay interest at a rate of 1.5% per month from the deduction date to the payment date.
Due Date For Form 24Q
Penalties Attached With Form 24Q
April to June
July to September
October to December
January to March
Form 24Q is filed every quarter. That’s why employers must adhere to the specified due dates for each quarter.
However, a penalty will be levied if the employer fails to file Form 24Q within the due date prescribed by the Income Tax Department. Under Section 234E, the penalty for late filing of TDS returns was typically Rs. 200 per day. It will be charged till the return is filed.
If there are discrepancies or incorrect details in the Form 24Q, the Income Tax Department may impose a penalty. This may range from a minimum of Rs. 10,000 to a maximum of the tax-deductible amount.
Important Points To Remember When Filling Form 24Q
Ensure that the details of all employees for whom TDS has been deducted are correct.
With that being said above, Form 24Q is filed quarterly. Check the due dates for each quarter and file the form accordingly because late filing can result in penalties.
If you discover any errors in a filed form, a revised return can be filed to rectify the mistakes.
If you need clarification on any aspect of Form 24Q, consider seeking guidance from Karr Tax. Our experts specialize in all kinds of TDS matters.
Records of all TDS deductions, challans, and filed Form 24Q returns should be maintained properly. These records may be required for audit or verification purposes.
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What is Form 16?Every Salaried Employee whose total income after all eligible deductions under income tax act exceeds the maximum amount not chargeable to tax is required to get their tax deducted from their employers as per their eligible tax slabs. Thus the employer has to deduct tax at source from income of every employee whose total income is chargeable to tax and has to deposit the TDS so deducted into the Govt. Account. Every Employer has to file TDS return of salary at the end of the Financial year and has to provide the Form 16 to every employee whose TDS has been deducted at Source. For more details check out this ➡