FORM 24Q TDS
Form 24Q- TDS Return On Salary Payment
Employers have several responsibilities towards their employees who are working for their organization. One specific task is deducting a portion of an employee's salary for income tax, known as Tax Deducted at Source (TDS). To do this properly, employers need to fill out a form called Form 24Q.
What is Form 24Q?
Form 24Q is a specific type of TDS (Tax Deducted at Source) return form used in India. It is instrumental in reporting critical details related to salary payments and the TDS deductions from employee salaries. Now the question arises: Who can deduct TDS on salaries?
TDS is deducted by employers who make salary payments to their employees. However, if the employee's total income is up to Rs. 5,00,000/-, TDS is not required to be deducted.
Specifically, the below entities are liable to deduct TDS on salaries:
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Companies and Organizations
Private companies, government organizations, non-profit entities, and other institutions are responsible for deducting the TDS from the salaries they pay to their employees.
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Individuals
Sometimes, individuals who are not employers but pay employees or professionals can also be responsible for deducting TDS on salaries.
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HUFs (Hindu Undivided Families)
Hindu Undivided Families (HUFs), if they have individuals on their payroll and make salary payments to them.
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Partnership Firms
Partnership firms that have employees on their payroll are also obligated to deduct TDS.
What Is The TDS Rate On Salary?
Income | Rate Slab |
|---|---|
More than 10,00,000 | 30% |
More than 5,00,000 but less than 10,00,000 | 20% |
More than 2,50,000 but less than 5,00,000 | 5% |
Less than 2,50,000 | Nil |
Essentials For Filling Form 24Q
Details of Challan:
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Number
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Date
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Amount
Details of Employee:
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PAN Number
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Other Important Income details
Form 24Q Classification
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Annexure-I
This section of Form 24Q contains the deductor, deductees, and challan details. Annexure I is filed for all four quarters of the financial year.
Contents:
Annexure I
Challan Details:
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Serial number
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Deposit date
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Branch’s BSR code
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The total amount of TDS that needs to be distributed among the deductees.
Deductees Details:
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Employee reference number (if available)
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PAN (Permanent Account Number)
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Employee name
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Payment date
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Paid amount
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TDS amount
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TDS section code
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EC (Education Cess)
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Annexure-II
Annexure II provides a comprehensive breakdown of an employee's salary, including details of any deductions that the employee can claim. It must be furnished and submitted in the financial year's fourth quarter (i.e., January to March).
Interest Rates On Form 24Q
As per Section 201 of the Income Tax Act of 1961, below are the interest rates applicable for late deposit of TDS on salary.
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If an employer fails to deduct TDS on salary, they may be liable to pay interest at 1% per month from the deduction date to the due date.
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If the TDS is deducted but not deposited on time, the employer may be liable to pay interest at a rate of 1.5% per month from the deduction date to the payment date.
Due Date For Form 24Q
Penalties Attached With Form 24Q
Quarter Number | Quarter Period | Due Date |
|---|---|---|
1st Quarter | April to June | 31st July |
2nd Quarter | July to September | 31st October |
3rd Qurter | October to December | 31st July |
4th Quarter | January to March | 31sr May |
Form 24Q is filed every quarter. That’s why employers must adhere to the specified due dates for each quarter.
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However, a penalty will be levied if the employer fails to file Form 24Q within the due date prescribed by the Income Tax Department. Under Section 234E, the penalty for late filing of TDS returns was typically Rs. 200 per day. It will be charged till the return is filed.
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If there are discrepancies or incorrect details in Form 24Q, the Income Tax Department may impose a penalty. This may range from a minimum of Rs. 10,000 to a maximum of the tax-deductible amount.
Important Points To Remember When Filling Form 24Q
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Ensure that the details of all employees for whom TDS has been deducted are correct.
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With that being said above, Form 24Q is filed quarterly. Check the due dates for each quarter and file the form accordingly because late filing can result in penalties.
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If you discover any errors in a filed form, a revised return can be filed to rectify the mistakes.
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If you need clarification on any aspect of Form 24Q, consider seeking guidance from Karr Tax. Our experts specialize in all kinds of TDS matters.
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Records of all TDS deductions, challans, and filed Form 24Q returns should be maintained properly. These records may be required for audit or verification purposes.
Form 24Q is a crucial component of TDS (Tax Deducted at Source) returns in India, primarily used for reporting TDS on salaries. To file Form 24Q TDS returns online, follow the prescribed procedures and deadlines. It's essential to understand the distinctions between Form 24Q and Form 26Q, as they serve different purposes in TDS reporting. Missing the due date for Form 24Q filing can result in penalties, so stay updated on the deadlines. You can download Form 24Q and other relevant TDS return forms from official sources. Form 24Q plays a significant role in income tax compliance, particularly for employers deducting TDS from employee salaries. Make sure to file Form 24Q accurately and on time to avoid issues with your TDS obligations.