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 are to be reported in 24Q. You can easily file your TDS returns through ClearTax software i.e. ClearTDS.
24Q consists of 3 annexures – Annexure I, Annexure II and Annexure III.
While Annexure I has to be submitted for all four quarters of an FY, Annexure II and Annexure III is not required to be submitted for the first three quarters. Annexure II and Annexure III have to be submitted in the last quarter (Jan – Mar) only.
TDS on salary has to be deducted as per the income tax slab. The employer has to consider all deductions and investments of the employee (if proofs of such investments are submitted).
Annexure I shows a deductee-wise breakdown of TDS against each particular challan.
Details of challan(s) to be mentioned in Annexure I
Details of deductee(s) to be mentioned in Annexure I
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.
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.
Annexure III consists of a total breakup of pension and interest income paid or credited during the financial year, his income from other sources, and house property and overall tax liability as calculated.
92A – Salary paid to govt. employees other than union govt. employees
92B – Salary paid to non-government employees
92C – Salary paid to union govt. employees
94P – Payment to Specified Senior Citizen
Quarter | Due Date |
April to June | 31st July |
July to September | 31st Oct |
October to December | 31st Jan |
January to March | 31st May |
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 –