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 2 annexures – Annexure I and Annexure II.
While 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.
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.
TDS Section Code
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
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.
Due Dates of 24Q
|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
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 OLTAS or NSDL
- Signed Form-27A is to be filed with the TDS return