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What is Form 24Q?

Form 24Q - TDS Return on Salary payment

An employer deducts TDS under Section 192 of the Income Tax Act, 1961, at the time of paying salary to an employee. TDS Form 24Q is to be filled by the employer for TDS deduction and submitted to the Income Tax Department on a quarterly basis. Details of the salary paid and the TDS deducted from it are reported in Form 24Q. All the companies and firms in India are required to make this declaration and payment on quarterly basis.

Form 24Q is made up of two annexures – Annexure I and Annexure II

Annexure I of Form 24Q consists of details about the deductor, challans and deductees. Details of challan(s) mentioned include BSR code of branch, challan serial number, date of deposition of challan, TDS amount to be allocated among deductees, total amount in challan and interest amount to be allocated among deductees. Details of deductee(s) to be mentioned include employee reference number (if available), name of the employee, PAN of the employee, date of payment/ credit, TDS Section code, TDS amount, amount paid or credited and education cess. Annexure II mentions salary details like total breakup of the salary and deductions to be claimed by the employee. Annexure I is required to be filed on all four quarters of a financial year, while Annexure II has to be submitted only on the fourth quarter of every financial year.

The due dates for submission of Form 24Q are as under:

QuarterDue Date
Q1) April to June31st of July
Q2) July to September31st of October
Q3) October to December31st of January
Q4) January to March31st of May

Form 24Q Format

e-TDS/e-TCS return as per the file formats is to be prepared in clean text ASCII format, with 'txt' as filename extension. It can be prepared with the use of an in-house software, any other third-party software or the NSDL e-TDS Return Preparation Utility. Follow the link to view Form 24Q Format as approved by the Income Tax Department - tin-nsdl.com/downloads/e-tds/download/24Q_01042015.pdf

After the file has been created in accordance with the file format, it needs to be verified using the File Validation Utility (FVU) provided by NSDL e-Gov. Should there be any errors, the FVU shall give a report of the errors. Correct the errors and verify it again through the FVU. The file generated by the FVU following successful validation has to be furnished to a TIN-FC.

Penalty: In case TDS is not deducted by the due date, an interest of 1% per month will apply, starting from due date of deduction to actual deduction date. If TDS is not deposited, 1.5% interest per month becomes applicable from actual date of deduction to actual date of payment. Under Section 234E, a penalty of Rs. 200 per day is to be paid as late filing fees until the return is filed.

Form 24Q Online

The form can be submitted online as well as submitted in person along with the necessary documents. However, for certain people, it is mandatory to submit the quarterly return online. That is if the deductor is:

  • A Government office

  • A company’s principal officer

  • Assessee has had its accounts audited for the previous year under 44AB of the Income Tax Act, 1961.

  • If the record of deductees in a statement is 20 or more during any quarter of a particular financial year.

Form 24Q and 26Q

Form 24Q and 26Q are nearly the same, except that the former is meant for declaration of TDS from income from salary, while the latter is used for declaration of TDS from sources other than salary. The TDS Sections covered in 24Q include 192A – Salary paid to government staff besides union government employees, 192B – Salary paid to non-government staff and 192C – Salary paid to union government staff.

The Sections covered in 26Q are:

194CPayment made to contractor and subcontractor
194D Insurance commission
194EE Payment made in relation to deposit under national savings scheme
194GCommission, prize etc., on sale of lottery tickets
194H Commission or Brokerage
194Dividend
194FPayments made for repurchasing mutual fund units
194AInterest besides interest on securities
194B Winnings from lotteries and crossword puzzles
193 Interest earned on securities
194BBWinnings from horse race
194I(a) and 194I(b)Rent
194J Fees for Professional or Technical Services
194LACompensation payment on acquisition of certain property
194IAPayment for transfer of certain immovable property besides agricultural land 9IA
194LBACertain income from units of a business trust
194DAPayment concerning life insurance policy
194LBBIncome generated from units of investment fund
194LBBIncome in respect of investment in securitization trust
Frequently Asked Questions

When is online return compulsory?

For certain people, it is mandatory to submit the quarterly return online. That is if the deductor is:

  • A Government office

  • A company’s principal officer

  • Assessee has had its accounts audited for the previous year under 44AB of the Income Tax Act, 1961.

  • If the record of deductees in a statement is 20 or more during any quarter of a particular financial year.

What are the due dates for submission of Form 24Q?

The due dates for submission of Form 24Q are as under:

QuarterDue Date
April to June31st July
July to September31st Oct
October to December31st Jan
January to March31st May

What are the annexures found in Form 24Q?

Form 24Q is made up of two annexures – Annexure I and Annexure II.

Annexure I consists of details about the deductor, challans and deductees. Details of challan(s) mentioned include BSR code of branch, challan serial number, date of deposition of challan, TDS amount to be allocated among deductees, total amount in challan and interest amount to be allocated among deductees. Details of deductee(s) to be mentioned include employee reference number (if available), name of the employee, PAN of the employee, date of payment/ credit, TDS Section code, TDS amount, amount paid or credited and education cess. Annexure II mentions the salary details like total breakup of the salary and deductions to be claimed by the employee. Annexure I is required to be filed on all four quarters of a financial year, while Annexure II has to be submitted only on the fourth quarter of every financial year.

What is the Form 26Q?

Form 26Q is a quarterly TDS return required to be filled up in respect to payments made to residents other than salary.

Is there any interest and penalty for non or late filing of Form 24Q?

Yes, there is. Should the instance arise where the deductor has not deposited TDS by the due date, the following penalties are applicable:

  • Late filing fee (if TDS is not filed by the deadline)

  • Interest (if TDS amount is not deposited on time)

  • Penalty (if TDS has not filed within 1 year of the due date)

What is Form 27Q used for?

Form 27Q has to be filled up for declaration of TDS returns on non-resident payments. In other words, it contains details of TDS deducted for payments other than salary to NRI. Some of the payments covered under Form 27Q include income of foreign institutional investors from securities, income in respect of units of non-residents and investment income in securitization trust.

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