Form 24Q- Know About TDS Return on Salary
The Income Tax Department of India created and introduced TDS, or Tax Deducted at Source, a sophisticated tax deduction mechanism. This technique works by withholding a predetermined amount of tax at the point of sale. The deduction varies based on the person's monthly income, from 1% to 10%. The employer deducts TDS u/s 192 at the time of employee salary payment. The pay TDS return must be submitted by the employer on Form 24Q. Quarterly submissions of 24Q are required. Employee salary information, including the amount of TDS withheld, must be reported in 24Q.
Table of Content
What is Form 24Q?
For a detailed statement of a citizen's TDS returns, Form 24Q must be completed. The form's data is derived from a citizen's pay statements and tax deductions. Companies and firms in India must make the declaration and payment on a quarterly basis. Information about the deductor, the deductees, the challans, and the salary TDS must be sent. Forms Annexure I and Annexure II must also be submitted with this form. It is necessary to complete Annexure I for each of the four quarters of the year. Annexure II has to be filed only for the last quarter of the year.
Form 24Q- Annexure
Annexures I and II make up the two annexures that are included in 24Q. For the first three quarters of an FY, Annexure II does not need to be submitted, but Annexure I must be submitted for each of the four quarters. Only the final quarter, from January to March, is required for Annexure II submission. According to the income tax slab, TDS must be withheld from salaries. If the employee submits documentation of their investments, the employer is required to take into account all of their deductions and investments.
Annexure I
Annexure I contains deductee-wise TDS break-up against each challan.
Details of challan(s):
BSR code of the branch
Challan serial number
Date of deposition of challan
Total Amount in Challan
TDS amount allocated among deductees
Interest amount allocated among deductees
Details of deductee(s):
Employee reference number (if available)
Name of the employee
PAN of the employee
Date of payment/ credit
TDS Section Code
Amount paid or credited
TDS amount
Education Cess
Furthermore, the employer must justify any non-deduction or reduced deduction of TDS if he does so or deducts it at a lower rate.
TDS Section Code
192A – Salary of government employees (other than union govt. employees)
192B – Salary of non-government employees
192C – Salary of union government employees
Annexure II includes the employee's income from other sources, a breakdown of his entire salary, any deductions he may be eligible for, his house property, and his total tax burden as determined.
Form 24Q Online
The form may be downloaded and submitted online, together with the necessary paperwork, or it can be given in person at the business or organisation. It must, however, be submitted online for some individuals. This comprises:
In case the deductor works for the government
If the principal officer of the corporation is the deductor
If Section 44AB of the Income Tax Act, 1961 mandates that the deductor's accounts for the previous year be audited
If a statement for any quarter of a specific fiscal year contains 20 or more records of deductees
Time Period of Form 24Q
The following table represents the time period for the submission of Form 24Q for different quarters during a year.
How to File TDS Return on Salary?
The following steps explain the process for filing a TDS return on salary:
Step 1: Visit the NSDL website to download the TDS utility. You must first log into the website before selecting the utility.
Step 2: You must first download and unzip the folder before selecting the TDS file.
Step 3: The utility must be opened, and you must select Form 24Q from the middle dropdown menu. The updated form hasn't been filed yet, so you'll need to select the standard icon and click "Continue."
Step 4: Form 24Q would then be directed by the server. Annexure II will only be available in the fourth quarter, thus you won't be able to select it during the first three.
Step 5: After that, the employer fills out the form window with the necessary data. These include the financial year, kind of deductor, employer details, TAN, and PAN. Fields marked with an asterisk are required. The form requires a mention of the details of the Form 24Q that was filed for the prior period at the end. The receipt number from the prior return contains the validation of the earlier file.
Step 6: The specifics of the tax amount paid are available on the challan tab. Crucial columns include the TDS amount, surcharge, interest, and fees. The BSR code is on the challan, which the employer can access. 200 should be chosen as the "minor head of challan." When creating challans, business owners should have a separate Excel form available. They would not have to consult each individual challan one at a time when producing the 24Q return.
Step 7: Complete Annexure I with the deductees' details, including the number of employees.
Step 8: The most crucial information in this return is the pay data in Annexure II. Start by adding the required number of rows, which should match the total number of workers.
Step 9: From the menu, choose "Create file" now.
Step 10: When all is said and done, click "Validate". After that, Form 27 A and the FVU file will be created. Once the employer has signed form 27 A, send it, together with the FVU file, to the TIN facilitator centre.
Interest Rates and Filing Fees
If TDS is not deducted, interest is charged at the rate of 1% from the date of deduction until the actual date of deduction. If TDS is not deposited, interest of 1.5% is charged every month from the actual date of deduction to the real date of payment.
A late submission is subject to a penalty of Rs. 200 per day until the return is filed, as per Section 234E. Daily payments are required until the total fine equals the TDS amount.
Tips for Filing TDS Return
You must remember the following tips and points when filing your TDS return:
Verify that all of the information you have provided is accurate, and if necessary, have the necessary paperwork to back it up.
Before submitting the PAN details, make sure you have verified all of them.
Remember that any error on the form could result in its cancellation.
On a case-by-case basis, the CBDT may extend the deadline for submitting the TDS Form 24Q for a specific financial year. These announcements are excellent opportunities for you to be informed about different information portals in case you haven't filed your taxes on time. Long-term, it will be advantageous to you. But since not all information portals can be trusted, please do your research and choose a reputable website.
Periodically, specific modifications are implemented in the Forms. You risk going in the incorrect direction if you don't stay updated about those.
Conclusion
With the given information, you should be able to complete Form 24Q accurately and with minimal mistakes. Whatever the case, it's critical to file a TDS return on time. It is your responsibility as a responsible citizen to pay your taxes on time if you wish to support India's growth and development.
FAQ
Q1. What is TDS on salary?
Before depositing the money in your account, employers take taxes out of your pay and submit it to the government on your behalf. TDS is the idea that taxes should be subtracted before payments are made.
Q2. What is the purpose of Form 24Q?
For the TDS deducted on salary under Section 192 of the Income Tax Act, 1961, Form 24Q is utilised to prepare eTDS returns. The deductor is required to submit it on a quarterly basis. It includes information about salaries paid and the amount of TDS that the business withholds from the employees.
Q3. What is the amount paid or credited in form 24Q?
You can view the total compensation paid to the deductee and the amount of TDS withheld from the employee's salary by referring to Form 24Q. No company is exempt from abiding by the guidelines and completing Form 24Q when needed.
Q4. What is the penalty for not filing form 24Q?
As per section 234E, till the return is filed, a fine of Rs. 200 per day must be paid. Until the total fine equals the TDS amount, this amount must be paid each day. As punishment under 271H, the AO may impose a penalty of at least Rs. 10,000 and a maximum of Rs. 1,00,000, in addition to the fees required under 234E.
Under 271H, there will be no fine if:
TDS is paid to the government, together with late filing penalties and any applicable interest.
The return is submitted before the one-year deadline expires.
Q5. What is the difference between 24Q and 26as?
Form 26Q is valid for other domestic incomes other than salary, while Form 24Q is valid when the payee (receiver of payment) is an employee of the company.
Q6. What is a TDS refund?
When an amount is subtracted from the tax amount that exceeds the actual tax burden, the TDS refund is the result. Refunds for TDS on Interest or Excess Paid are available. Tax Deducted at Source, or TDS, is the amount of tax that is withheld from an employee's pay by their employer or another deductor and subsequently deposited to the IT Department.
Q7. Who can deduct TDS from salaries?
In the event that salary exceeds the basic exemption limit, employers are required to deduct TDS. An individual, HUF, firm, or company can be an employer. Every quarter, the employer is required to submit a Form 24Q TDS return regarding the tax deduction on salaries.
Q8. How to calculate TDS on salary?
The amount of TDS that will be withheld is calculated by dividing the employee's projected tax due for the fiscal year by the total number of months he worked for that specific business. Nevertheless, TDS will be withheld at the rate of 20% plus 4% cess if the employee does not have a PAN.
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