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Form 24Q – TDS Return on Salary Payment

Updated on: May 22nd, 2024

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3 min read

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. 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 income tax slab. The employer has to consider all deductions and investments of the employee (if proofs of such investments are submitted).

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.

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.

Annexure III of 24Q

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.

TDS Section Code

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

Due Dates of 24Q

QuarterDue Date
April to June31st July
July to September31st Oct
October to December31st Jan
January to March31st 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

Points to Ponder

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

Frequently Asked Questions

What is TDS on Salary?

Section 192 deals with the TDS on salary. It mandates every employer to calculate income tax on salary in case the salary of the employee exceeds the basic exemption limit and deduct TDS on salary payments.

What is the purpose of Form 24Q?

Form 24Q is a statement that is utilized to prepare e-TDS statement for the TDS on Salary by employer. The employer is required to file it on a quarterly basis. 

Circumstances where no tax needs to be deducted under section 192?

No tax needs to be deducted if the taxable income of the employee does not exceed Rs.2.5 Lakhs. (for senior citizens – Rs. 3 lakhs, for super senior citizens – Rs. 5 Lakhs). No tax needs to be deducted if the income tax payable by the employee is “NIL” after deductions or rebate if any.

When should the TDS for salary be deducted?

TDS shall be deducted at the time of actual payment of salary.

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