TDS Return on Salary Payment

Tax Deductor has the liability to make tax deductions and file the TDS return form. There are mainly two different types of TDS returns and forms that need to be filed within the due date. Form 24Q is for salary return and Form 26Q is for non-salary return. Hereunder this article, we will discuss form 24Q which is TDS Return on Salary Payment.

What is Form 24Q TDS Return?

When an employer pays salary to an employee, the employer is required to deduct TDS u/s 192. The employer has to file a salary TDS return in form 24Q, which needs to be submitted on a quarterly basis. Details of salary paid and TDS deducted on such salary payment needs to be submitted in 24Q form. TDS on salary has to be deducted as per the applicable Income Tax Slab. While deducting TDS, the employer has to consider all deductions and investments of the employee (if provided.)

Section Code for TDS deduction u/s 192

  • Section 192A- Salary paid to government employee other than union government employee.
  • Section 192B-Salary paid to non-government employee.
  • Section 192C-Salary paid to union government emplyee

What details Form 24Q to contain?

It contains details like the salary paid and TDS deducted of the employee by the employer. The form is consists two Annexures i.e. Annexure- I and Annexure-II.

Annexure-I

It contains the details of the deductor and deductee-wise breakup of TDS against each particulars challan.

Details of challan in annexure I
  • BSR Code of bank branch.
  • Date of deposit of challan.
  • Challan serial number.
  • Total amount in challan.
  • TDS amount to be allocated among dedcutees.
  • Interest amount to be allocated among dedcutees.
Details of dedcutee in annexure I
  • PAN of the employee.
  • Name of the employee.
  • TDS section code.
  • Date of payment/credit.
  • Amount paid or credited.
  • TDS amount.
  • Education cess.

Note- If the employer doesn’t deduct TDS or deducts TDS at a lower rate, he will have to provide the reasons for such non-deduction or lower deduction.

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Annexure-II

It contains the details of the deductee’s salary breakup, any other income, and deduction details. Annexure-II does not need to be submitted on a quarterly basis and submitted only in the 4th quarter with details of its employee salary for all 4 quarters i.e for a complete financial year.

What are the due dates of form 24Q TDS Return?

QuarterMonthDue Date
1st QuarterApril-June31st July
2nd QuarterJuly-September31st October
3rd QuarterOctober-December31st January
4th QuarterJanuary-March31st May

Form 24Q Format

Fees/Interest/Penalties of form 24Q TDS Return

Non Deduction of TDS (either in whole or in part)- If tax is required to be deducted and not deducted by the deductor then the interest rate is 1% per month (12% per annum) from the date on which tax was deductible to the date on which it is actually deducted.

Non-payment of TDS (either in whole or in part)- If tax is deducted but not paid by the deductor then the interest rate is 1.5% per month (18% per annum) from the date on which TDS is required to be deducted till the date of actual payment of TDS.

A person who fails to file a TDS return on or before the due date as prescribed then he shall be liable to pay a sum of late fees as prescribes under section 234E and/or he may also be liable to pay a penalty as prescribed under section 271H.

Late filing fees- As per section 234E, where a person fails to file a TDS return on or before the due date then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues.

Note:- The amount of late fee will be subject to the maximum amount of TDS.

Penalty under section 271H- Under Income Tax Act, 1961 section 271H prescribes a penalty for two types of default. one is for a person who fails to furnish the TDS return within the prescribed time and the second one is for the person who furnishes incorrect information while filling the TDS return.

As per section 271H, The defaulter would be liable to pay a minimum penalty of Rs. 10,000, however, the maximum amount of this penalty may be extended to Rs. 1,00,000.

Note:- This penalty is in addition to the penalty under section 234E.

Frequently Asked Questions- FAQs

  1. What is form 24Q in Income Tax?

    When an employer pays a salary to an employee, the employer is required to deduct TDS u/s 192. The employer has to file a salary TDS return in form 24Q, which needs to be submitted on a quarterly basis. Details of salary paid and TDS deducted on such salary payment needs to be submitted in 24Q form.

  2. What are 24Q and 26Q?

    Tax Deductor has the liability to make tax deductions and file the TDS return form. There are mainly two different types of TDS returns and forms that need to be filed within the due date. form 24Q is for salary return and Form 26Q is for non-salary return.

  3. Who is required to file 24Q?

    The employer has to file a salary TDS return in form 24Q, which needs to be submitted on a quarterly basis. Details of salary paid and TDS deducted on such salary payment needs to be submitted in 24Q form.

  4. What is form No. 26Q?

    Form 26Q is a quarterly statement of deduction of tax under section 200 (3) of the Act. This form is filed in respect of non-salary payments for the respective quarter ended. It is required to submit PAN details by the non-government educator, and for government deductee, it must mention in the form “PANNOTREQD”.

  5. What is form 27A?

    Form 27A is a simple form containing a summary of quarterly e-TDS/TCS return. It is a summary of the e-TDS/TCS return which contains complete totals of the amount paid, TDS, and tax deposit (challan amount).

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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.

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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)

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