TDS Form 24Q: TDS on Salary

Form 24Q is primarily associated with the deduction of tax on salary payments. It is a TDS return form filed by employers who deduct TDS from salary payments. In this blog, we will delve into the intricacies of Form 24Q, its significance, and the process of filing it.

What is TDS?

TDS is the tax deducted from the payments made by the deductor related to salary, rent, commission, professional fees, interest, and so on.
The tax is deducted at the source of the payments being made and the recipient receives the net amount after reducing TDS. The gross amount of TDS is added to the recipient’s gross income and TDS is adjusted against the recipient’s final tax liability.

What is Form 24Q: TDS on Salary Income

Form 24Q comes into play when employers, referred to as deductors, disburse monthly allowances to employees, known as deductees. The deductor deducts TDS under Section 192 and is obligated to submit Form 24Q every quarter of the financial year. This form details the total remuneration paid to the employee and the corresponding TDS deductions.

Who Deducts TDS on Salaries?

Employers, whether individuals, Hindu Undivided Families (HUFs), firms, or companies, are required to deduct TDS on salaries if the employee's income exceeds the basic exemption limit. The TDS return on salary deductions, under Form 24Q, needs to be filed quarterly.

Requirements for Filing Form 24Q

To initiate TDS deduction and file Form 24Q, having a Tax Deduction Account Number (TAN) is imperative. Additionally, details such as challan information and employee particulars, including PAN and other income details, are essential for accurate filing.

Classification of Form 24Q: Annexures I and II

Form 24Q consists of two annexures – Annexure I and Annexure II. Annexure I is mandatory for all four quarters, while Annexure II is only required for the last quarter (January to March).

Form 24Q - Annexure I

Challan Details:

- Serial number of the challan

- BSR (Basis Statistical Returns) code of the branch

- Date of deposit

- Total TDS and interest allocated among deductees

Details of the Deductee:

- Employee reference number

- PAN of the employee

- Name of the employee

- Date of payment

- Amount paid

- TDS amount

- TDS Section Code

- Education Cess

Form 24Q - Annexure II

Annexure II encompasses salary details, including the breakup, deductions, other income sources, assets, and tax liability of the employee. It is specifically submitted in the fourth quarter.

Due Dates for filing Form 24Q

The due dates for filing Form 24Q are mentioned below,

Delay in Deductions and Deposits

Mentioned below is the late filing fee applicable to Form 24Q, TDS on Salary,

- If TDS is not deducted: 1% per month from the date of deduction to the due date

- If TDS is not deposited: 1.5% per month from the date of deduction to the date of payment

Penalties for Late Submission

- Late Filing Fees (Section 234E): Rs. 200 per day until the return is filed
No penalty if TDS is deposited, late filing fees and interest are deposited, and the return is filed within one year from the due date.

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Web-e-TDS is a one-stop solution designed to simplify the process of filing TDS/TCS Returns. Packed with multiple features and reports, this innovative platform aims to make TDS compliance easy, error-free, and efficient.

Key Features of Web-e-TDS:

1. Simplified Filing Process: Web-e-TDS offers a user-friendly interface, providing a simplified and error-free experience for TDS return filing. Built-in checks ensure auto-validation of errors, minimizing the risk of inaccuracies in your TDS returns.

2. Import/Export Utility: Import data effortlessly from various sources, such as MS Excel files, text files, and Consolidated File. The flexibility to import/export data makes it convenient for users to transition to Web-e-TDS or exchange data with other systems.

3. Excel Utility: Excel utility is available for generating TDS/TCS Returns, particularly beneficial for handling bulk data downloaded from Enterprise Resource Planning (ERP) systems. Simplify the import of salary and deductee details directly from Excel, ensuring a smooth transition of data.

4. Calculators: Web-e-TDS features easy-to-use calculators for different types of taxability and calculations. The calculated figures are automatically populated in the relevant fields, minimizing manual data entry errors.

5. Consolidated Dashboard: Enjoy the convenience of a consolidated dashboard that brings together all utilities and features in one place. The user-friendly interface enhances the overall TDS filing experience, reducing the time and effort required.

For any queries related to TDS Filing or Form 24Q, drop a comment down below.