Form 24Q - TDS Return for Salary Payment

Form 24Q is a quarterly TDS (Tax Deducted at Source) return that employers in India must file to report the TDS deducted on salary payments under Section 192 of the Income-tax Act. When an employer deducts tax from employees’ salaries, they must deposit that tax with the government and then file Form 24Q to provide full details of the salaries paid, taxes deducted, and challan (payment) information to the Income Tax Department. This ensures that employees receive appropriate tax credits and the employer stays compliant with TDS regulations.

What is Form 24Q?

Form 24Q is a statement of TDS on salary payments that employers submit every quarter. It contains details of:

• Employer (deductor) information such as TAN and PAN.
• Employee (deductee) details, including PAN, salary figures, and TDS deducted.
• Challan details showing where and when the TDS has been deposited with the government.

This form helps the tax department reconcile TDS credits in employees’ accounts and enables accurate tax filing for both employers and employees.

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Who must file Form 24Q?

Every employer or deductor who deducts TDS from salaries paid to employees during the financial year must file Form 24Q. This includes:

• Private and public companies
• Partnerships, sole proprietors, HUFs paying salaries
• Government and PSU entities
  There is no exemption simply because an employee’s income is below a certain level; if TDS has been deducted during the quarter, the employer must file.

Format and Key Components of Form 24Q

Form 24Q consists of two main annexures:

Annexure I (for all four quarters):

This includes quarterly data such as:

• Deductor’s details (TAN, PAN, address)
• Employee-wise salary paid and TDS deducted
• Challan details including BSR code, challan serial number, date of deposit, and amount.

Annexure II (only in the 4th quarter):

This contains the annual salary and tax computation for each employee, reconciling the total TDS deducted during the year and providing a complete income breakdown including exemptions, deductions, and taxable salary.

These annexures make the return comprehensive, especially at year-end when full payroll data is reported.

Due Dates for filing Form 24Q

Form 24Q must be filed quarterly after the end of each tax period as follows:

Quarter Period

Due Date

April – June

31st July

July – September

31st October

October – December

31st January

January – March

31st May

These deadlines apply for the financial year unless the government issues specific extensions.

Note: The TDS amount itself must be deposited with the government by the 7th of the following month in which tax was deducted (for March, generally by 30th or 31st March/April depending on notifications) to avoid interest charges.

Why filing Form 24Q matters?

Filing Form 24Q on time is important because:

• It ensures employees’ TDS credits are correctly reflected in their tax accounts (Form 26AS).
• It helps the employer avoid penalties and interest for late or incorrect filing.
• Accurate TDS returns support correct issuance of Form 16, which summarises salary and tax deducted for employees annually.

Late filing can attract a late fee of ₹200 per day under Section 234E, capped at the total amount of TDS deducted. For more serious non-compliance or incorrect returns, the department may impose penalties between ₹10,000 and ₹1,00,000 under Section 271H.

How to file Form 24Q online (Step-by-Step)

Filing Form 24Q involves preparing the TDS return file offline and uploading it on the Income Tax e-filing portal or TRACES. A high-level process is as follows:

Step 1: Prepare Required Data

Collect employer TAN, employee PAN and salary details, challan details of TDS deposits, and salary breakup for the period.

Step 2: Download TDS Utility

Download the Return Preparation Utility (RPU) and File Validation Utility (FVU) from the Protean/NSDL e-TDS portal to create the 24Q return file.

Step 3: Fill in Return Data

Using the utility, enter the deductor’s details, annexure I and annexure II (for Q4), employee-wise salary and TDS deducted, and challan details.

Step 4: Validate the File

Run the FVU on the prepared file to ensure there are no errors.

Step 5: Upload on TRACES/Income Tax Portal

Log in with your TAN credentials to the TRACES or Income Tax e-filing portal, select Form 24Q, upload the validated file, and submit.

Step 6: Download Acknowledgement

After successful upload, save the acknowledgement receipt/response file as proof of filing for records.

Some payroll software automates part of this process, but the general steps remain the same.

Conclusion

Form 24Q is an essential quarterly TDS return that all employers must file to report TDS deducted from salary payments under Section 192. It ensures correct reporting of payroll tax details, helps employees claim their tax credits, and maintains compliance with Indian tax laws. Timely and accurate filing with correct salary and challan information prevents penalties and supports smooth issuance of annual tax documents like Form 16.