Form 24Q

What Is Form 24Q TDS?

In accordance with Section 192, company will withhold TDS from employee's monthly salary. To demonstrate TDS for compensation, company must provide form 24Q TDS for each quarter of fiscal year.

You can view total compensation paid to deductee & amount of TDS withheld from employee's salary by referring to Form 24Q. No company is exempt from following guidelines & completing Form 24Q TDS when required.

Purpose of Form 24Q

For detailed statement of citizen's TDS returns, this form must be completed. form's data is derived from citizen's pay statements & tax deductions. Companies & firms in India must make declaration & payment on quarterly basis.

Information about deductor, deductees, challans, & salary TDS must be sent. Forms Annexure I & Annexure II must also be submitted with this form.

It is necessary to complete Annexure I for each of four quarters of year. Only for last quarter of year must Annexure II be filed.

Requirements For Filing Form 24Q

Form 24Q can be downloaded from this page & submitted online together with required paperwork. 
Requirements for submitting Form 24Q:

• Challan Amount 
• Challan Number 
• Challan Date
• Employee's PAN & 
• Further income information

Who Can Deduct TDS On Salaries?

TDS on salaries is governed by Section 192, and the responsibility to deduct it lies with the employer. In simple terms, any person or organisation paying salary can be required to deduct TDS, provided the employee’s estimated taxable salary income crosses the basic exemption limit for the year (after considering eligible deductions/exemptions, where applicable).

Typically, the following can deduct TDS on salaries:

• Companies (private or public) paying salary to employees
• Partnership firms and LLPs employing staff
• Proprietors and professionals employing individuals (where salary is paid)
• Trusts, societies, and associations with salaried employees
• Government departments and public sector bodies paying salary or pension

The employer is expected to estimate the employee’s annual taxable income, deduct TDS proportionately across the year, and deposit it within the prescribed timelines. Employers then report the deductions through Form 24Q, which is the quarterly TDS return for salary payments.

Classification Of Form 24Q

Annexures I & II are two annexures that make up Form 24Q. While Annexure II is only necessary for last quarter (January to March), Annexure I is required for each of four quarters.

Annexure I Challenge, Form 24Q TDS Information includes: 

• Challan serial number; 
• Branch BSR (Basis Statistical Returns) code; 
• Date of deposit; 
• Total TDS & interest distributed among deducted.
• Specifics of Recipient: Following details must be provided: 
•     Employee reference number, 
•     PAN, 
•     Name, 
•     Date of payment, 
•     Amount paid, 
•     TDS amount, 
•     TDS Section Code, & 
•     Education cess.

Form 24Q: Attachment II

Details on employee's salary, including its breakdown, deductions, additional sources of income, assets, & tax obligation, are included in Annexure II. In particular, it is turned in during fourth quarter.

Due Dates For Filing Form 24Q?

 Due dates for filing Form 24Q are mentioned below:

Where Can I Obtain Form 24Q For TDS Returns?

Form may be downloaded & submitted online, along with necessary paperwork, or it can be turned in in person at business or organization.

It must, however, be submitted online for some individuals. This comprises: -If deductor is employee of government agency -If deductor is chief executive officer of business

• If Income Tax Act, 1961's Section 44AB mandates that detector’s accounts for previous year be audited.
• If statement for any quarter of specific fiscal year has 20 or more records of deducted.

Steps to Submit Form 24Q?

Step 1: Visit NSDL website to get TDS software. You must first log into website before selecting utility.
Step 2: Downloading & unzipping folder is required before selecting TDS file.
Step 3: utility must be opened, & you must select Form 24Q TDS from center dropdown menu. updated form hasn't been filed yet, so you'll need to select standard icon & click "Continue."
Step 4: Form 24Q would then be directed by server. Annexure II will only be available in fourth quarter, thus you won't be able to select it during first three.
Step 5: After that, employer fills out form window with necessary data. These include financial year, kind of deductor, employer details, TAN, & PAN. Fields marked with asterisk are required. form requires mention of details of Form 24Q that was filed for prior period at end. receipt number from prior return contains validation of earlier file.
Step 6: specifics of tax amount paid are available on challan tab. Crucial columns include TDS amount, surcharge, interest, & fees. BSR code is on challan, which employer can access. 200 should be chosen as "minor head of challan."
When creating challans, business owners should have separate Excel form on hand. They may prepare 24Q return with its help instead of having to go through each individual challan one at time.
Step 7: Complete Annexure I with deductees' details, including number of employees.
Step 8: most crucial section of this return is wage information in Annexure II. Start by adding required number of rows, which should match total number of workers.
Step 9: From menu, choose "Create file" now.
Step 10: When all is said & done, click "Validate". After that, Form 27 & FVU file will be created. Once employer has signed form 27 A, send it, together with FVU file, to TIN facilitator center.

Penalty For A Late Submission

Late submission of Form 24Q can lead to late fees and penalties, depending on the length of delay and the nature of non-compliance. Two types of consequences are commonly relevant:

1) Late Fee (Mandatory)

• A late fee of ₹200 per day is charged for delay in filing the TDS return, counted from the due date until the date of filing.
• This late fee is capped at the total amount of TDS reported in the return (it cannot exceed the TDS amount).

2) Penalty (Discretionary)

In addition to late fees, the assessing officer may levy a penalty for non-compliance, typically ranging from:

• ₹10,000 to ₹1,00,000, depending on the circumstances and severity.

Late filing can also create practical issues - such as delays in employees seeing TDS credit in their tax records, mismatches during return filing, and avoidable follow-ups from tax authorities.

Format For Form 24Q

Following are primary guidelines to remember when filling out 24Q Format:

• For online upload, file must be created in ASCII format & have "txt" filename extension.
• Every record, including last record, needs to start & end with new line characters. Included among Hex Values are "0D" & "0A".
• It is necessary to mention constant values like "Record Type" & "Upload Type" solely in block letters. When it comes to "Record Type," "File Header" will be shown as "FH" rather than "fh."
• All amount fields must include decimal values up to two digits of precision.
• Take 900.70 or 9878.00, for instance. It should be noted that values should contain decimal point followed by two zeros in specific amount fields where fractional portions are prohibited. For example, values - 2345 & - 2345.00 will be accepted.
• A precision number of 4 is required in decimal when entering rate at which tax is deducted (DD). For instance, rate must be shown as 7.0000 if it is 7.
• Any reference to M or O designates mandatory field & optional field, depending on context.
• 'ddmmyyyy' should be format used for all dates. There shouldn't be any dates that are from future.
• In order to fill in notes section of nil challans or transfer vouchers, deductee records with flag of 'A' or 'B' must be present in case of lower or non-deduction.
• Forms Annexure I & Annexure II must also be submitted with this form. It is necessary to complete Annexure I for each of four quarters of year.
• Only for last quarter of year must Annexure II be filed.

Difference Between Form 24Q & Form 26Q

With exception that Form 26Q is intended for declaration of TDS from other sources of income & Form 24Q is intended for disclosure of TDS from salary, these two forms are nearly identical.

When filling out declaration form, you can refer to sections 193, 194, 194A, 194BB, 194C, 194D, 194EE, 194F, 194G, 194H, 194I, 194J, 194LA, & rule 31A, which define sources of income in form 26Q. sections in Form are explained in Annexure.

Conclusion

To file your 24Q TDS return, ensure you gather all necessary details for accurate reporting. 24Q TDS return is crucial for declaring tax deducted at source on salary payments. Timely submission of 24Q TDS return helps maintain compliance with tax regulations. To comply with tax regulations, you must file 24Q form for TDS return each quarter. Ensure all details are accurate in 24Q form for TDS return to avoid penalties. When filing your Income Tax Returns, you must accurately report your Taxable Income & include Salary Details. Ensure you account for Deductions & Exemptions, including any Deduction under Section 80C, to lower your Tax Computation. Your Taxable Salary, after considering all deductions, should match amount on your TDS Certificate.