Form 24Q is an Income Tax form used for filing TDS (Tax Deducted at Source) returns on salary payments. Employers who deduct TDS from employees’ salaries are required to file Form 24Q quarterly. This form contains details of the TDS deducted and deposited by the employer on behalf of the employees and helps maintain transparency and proper tax credit for the employees. Filing Form 24Q is mandatory for employers across government, private, and non-profit sectors who deduct TDS under Section 192 of the Income Tax Act.
Purpose of Form 24Q
The key purpose of Form 24Q is to report TDS deducted on salary payments to the Income Tax Department and provide details of salary paid and tax collected in a structured quarterly format. It helps ensure the tax deducted is correctly credited to employees, ensuring accurate tax assessment and refund claims where applicable. It also maintains transparency in the employer-employee tax deduction framework and aids the tax authorities in reconciliation and verification of TDS deductions.
How to File TDS Form 24Q
- Gather Required Information: Employer’s TAN and PAN, employee PAN and personal details, TDS deducted and salary paid details, and challan information (BSR code, serial number, deposit date).
- Prepare the Return: Form 24Q consists of 3 annexures, available at https://incometaxindia.gov.in/documents/tds%20tutorial/form_24q.pdf
- Annexure I of Form 24Q gives a challan-wise TDS break-up to every individual challan as follows: Annexure I of 24Q gives challan-wise detailed deductee-wise TDS break-up to each particular challan. It contains the vital challan details like the BSR code of the tax payment branch, date of deposit, challan serial number, total challan amount, and the amount of TDS and interest distributed among the deductees. For every deductee (employee), the annexure captures employee reference number (where available), PAN, name, TDS section code, payment or credit date, amount credited or paid, TDS deducted, and education cess. Where TDS is neither deducted nor deducted at lower rate, reasons for such non-deduction or lower deduction are to be given by the employer.
- Annexure II is submitted only for the last quarter of the financial year and has a detailed breakdown of the salary drawn by employees during the year. It provides information on salary components, deductions taken by the employee, income from other sources, income from house property, and arrives at total tax liability.
- Annexure III includes total breakups of pension and interest income credited in the financial year, inclusive of income from other sources, house property, and total tax liability.
- File Online through TRACES or TIN Facilitation Centres: Employers can file Form 24Q online using the Income Tax Department’s TRACES portal https://www.tdscpc.gov.in or through authorized TIN-FCs https://tinpan.proteantech.in/services/etds-etcs.
- Form format: The TDS return in accordance with the file formats is to be prepared in clean text ASCII format with ‘txt’ as filename extension. e-TDS return can be prepared using Return Preparation Utility (RPU) provided by Protean (formerly NSDL eGov) or any other third party software.
- Verification: Once the file has been prepared as per the file format, it should be verified using the File Validation Utility (FVU) provided by Protean (formerly NSDL eGov) which ensures that there are no formatting errors in the form filled. In case file has any errors the FVU will give a report of the errors. Rectify the errors and verify the file again through the FVU. Generated .fvu file can be submitted at TIN-FC or uploaded at https://www.incometax.gov.in/iec/foportal/ website.
- Submit and Download Acknowledgment: After validation and submission, download the acknowledgment receipt as proof of filing.
- Maintain Records: Keep a copy of the filed returns and acknowledgments for compliance and audit purposes.
For more information and to download RPU and FVU click on: https://tinpan.proteantech.in/RPU_e-Tutorial_on_TDS_TCS.pdf
Deadlines for Filing Form 24Q
Quarterly deadlines are:
- Q1 (April to June) – 31st July
- Q2 (July to September) – 31st October
- Q3 (October to December) – 31st January
- Q4 (January to March) – 31st May.
Non filing of Form 24Q or Late filing
Failure to file Form 24Q or late submission attracts several penalties under the Income Tax Act 1961:
- Late Filing Fee (Section 234E): ₹200 per day of delay until the date of filing, and such fee cannot exceed the amount of TDS payable.
- Penalty under Section 271H: If the delay exceeds one year or if incorrect details are submitted, penalties range from minimum of ₹10,000 to maximum of ₹1,00,000.
- Prosecution: In cases of failure to deposit deducted tax, imprisonment ranging from 3 months to 7 years along with fines may be imposed.
Employers must ensure timely and accurate filing to avoid fees, penalties, and possible legal consequences. Submitting the wrong PAN, challan, or TDS amount in the return may also lead to penalties.
FAQs
1.What is Form 24Q?
Form 24Q is a quarterly TDS return filed by employers reporting TDS deducted on salary payments.
2.Who needs to file Form 24Q?
All employers deducting TDS under Section 192 on salary payments must file Form 24Q.
3.What are the annexures of Form 24Q?
Annexure I shows challan-wise TDS details; Annexure II shows salary breakup and tax liability; Annexure III covers pension and interest income details.
4.When is Form 24Q due?
Due dates are 31st July (Q1), 31st October (Q2), 31st January (Q3), and 31st May (Q4).
5.How to file Form 24Q?
File online via the TRACES portal or TIN Facilitation Centres using prescribed file formats with validation utilities.
6.What are the consequences of late filing?
Late filing attracts a ₹200/day fee under Section 234E, penalties between ₹10,000-₹1,00,000 under Section 271H, and possible prosecution for non-deposit of TDS.
7.What details are required for Annexure I?
BSR code, challan date, serial number, total amount, TDS allocated by deductee, PAN, employee name, TDS section code, and payment/credit dates.
8.Is Annexure II filed every quarter?
No, Annexure II is filed only in the last quarter with detailed salary and tax details.
9.What format should the TDS return file be in?
It must be a clean text ASCII file with a .txt extension validated by File Validation Utility (FVU).
10.Can TDS be filed manually?
No, Form 24Q must be filed electronically through authorized portals.
11.What if TDS is not deducted or deducted at a lower rate?
Employers must provide reasons for non-deduction or lower deduction in Annexure I.
12.How are errors in filing rectified?
Errors flagged by FVU must be corrected before submission; correction returns can be filed if needed.
13.What records should be maintained after filing?
Employers should keep copies of filed returns and acknowledgments for audit and compliance.
14.Where to download Return Preparation Utility (RPU) and FVU?
From the Protean (formerly NSDL eGov) website and TIN Facilitation Centre resources.
15.What is the penalty for submitting incorrect PAN or challan details?
Incorrect details can result in penalties and delay in TDS credit to employees.
