What is TDS?

TDS (Tax Deducted at Source) is a tax system where a percentage of tax is deducted directly from an employee’s salary before payment. This deduction rate can vary between 1% to 10%, depending on the income bracket. It helps the government ensure timely tax collection.

Purpose of Form 24Q

The primary purpose of Form 24Q - TDS Return on Salary Payment is to declare the amount of TDS deducted and submitted by the employer. The form helps the Income Tax Department keep track of tax deductions on salaries.

Who Can Deduct TDS on Salaries?

Employers, whether individuals, HUFs, companies, or firms, must deduct TDS from employees' salaries if their salary exceeds the basic exemption limit.

Requirements for Filing Form 24Q

To file Form 24Q - TDS Return on Salary Payment, employers need specific details:

 

Challan Number

 

Date of TDS deposit

 

Challan amount

 

Employee details: PAN, salary paid, and TDS amount

 

TDS Section Code for salary

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Classification of Form 24Q
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Form 24Q has two components:

 

Annexure I:Submitted for every quarter, detailing the TDS deducted from employees' salaries.

 

Annexure II: Submitted in the 4th quarter, detailing the entire salary paid and taxes deducted throughout the financial year.

Penalty for Late Submission

If the TDS Return on Salary Payment is not filed on time, a penalty of Rs 200 per day is imposed under Section 234E. Additional penalties under Section 271H can range from Rs 10,000 to Rs 1,00,000.

Format for Form 24Q

Form 24Q must be prepared in ASCII format with the file extension .txt. Each record should start and end on a new line, with constant values like 'Record Type' and 'Upload Type' in uppercase (e.g., 'FH' for File Header). Amount fields should have two decimal places (e.g., 900.70 or 2345.00), while tax deduction rates (DD) need four decimal places (e.g., 7.0000). The date format must follow 'dd mm yyyy,' and future dates are not allowed. Both Annexure I (quarterly) and Annexure II (final quarter) submissions are mandatory for complete compliance.

Due Dates for Filing Form 24Q

Quarter Due Date
April to June 31st July
July to September 31st October
October to December 31st January
January to March 31st May (next F.Y.)

Why Choose BizMantra for TDS Return on Salary Payment?
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At BizMantra, we simplify the complex process of TDS Return on Salary Payment. Our expert team ensures that you meet all compliance requirements while avoiding penalties.


Key Benefits:
 

Expert Consultation: Our CAs and legal experts guide you through every step.

 

Quarterly Tracking & Reminders:Never miss a deadline with our timely reminders.

 

Digital Process: We offer a seamless online process for error-free filings.

 

Affordable Pricing:Competitive rates with transparent pricing ensure no hidden costs.

FAQs on TDS Return on Salary Payment
1. What is TDS Return on Salary Payment?

Answer:TDS Return on Salary Payment is the process where employers deduct Tax Deducted at Source (TDS) from employees' salaries and file a return with the Income Tax Department using Form 24Q. It is mandatory for employers to file this return quarterly.

2. What is Form 24Q in TDS Return on Salary Payment?

Answer:Form 24Q is a TDS return form filed by employers that report the details of TDS deducted from the salaries paid to employees. It is submitted quarterly and includes both Annexure-I and Annexure-II in the 4th quarter to provide a complete salary breakdown for the year.

3. When is TDS deducted on salary payments?

Answer: TDS is deducted from the salary if the annual salary exceeds the basic exemption limit under the Income Tax Act. The employer deducts TDS each month and files quarterly returns.

4. What is the due date for filing Form 24Q?

Answer: The due dates for filing Form 24Q are:
For April to June quarter: July 31st
For July to September quarter: October 31st
For October to December quarter: January 31st
For January to March quarter: May 31st of the following financial year.

5. What is the penalty for late filing of TDS Return on Salary Payment?

Answer:If Form 24Q is filed late, there is a penalty of Rs 200 per day until the return is filed. Under Section 271H, additional penalties of Rs 10,000 to Rs 1,00,000 may apply for non-compliance or incorrect filing.

6. What is Annexure-II in Form 24Q?

Answer: Annexure-II of Form 24Q provides the complete salary details for the financial year and is mandatory to submit in the 4th quarter. It is essential for finalizing the tax liability of employees.

7. Can I revise Form 24Q if there are errors in the TDS return?

Answer: Yes, form 24Q can be revised if errors are identified after submission. A correction statement needs to be filed with the accurate details.

8. How can I download Form 24Q from the TRACES portal?

Answer: You can download Form 24Q from the TRACES portal by logging in, navigating to the "Downloads" section, and selecting the relevant financial year and quarter to download the form.

9. Is a TDS certificate mandatory for employees?

Answer: Yes, employers must issue a TDS certificate (Form 16) to employees after the TDS return is filed. This certificate helps employees file their individual tax returns and claim the appropriate deductions.

10. Can TDS be refunded if excess TDS is deducted?

Answer:If excess TDS is deducted, employees can claim a refund when filing their income tax returns. The refund will be processed by the Income Tax Department after reviewing the returns.