Form 24Q - Quarterly TDS Statement Salary
Tax Deducted at Source (TDS) is a mechanism under the Income-Tax Act, 1961, where tax is deducted at the source of income. For salary income, employers are responsible for deducting TDS as per the income tax slabs and depositing it with the government. To report these deductions, employers must file Form 24Q, a quarterly TDS statement for salary.
What is Form 24Q?
Form 24Q is a quarterly statement that an employer (deductor) files to the Income Tax Department, providing details of TDS deducted from salary payments made to their employees (deductees). It contains comprehensive information about the salary paid and the tax deducted during each quarter of the financial year.
Key Information Contained in Form 24Q:
Form 24Q is divided into two annexures:
Annexure I: Deductor and Challan Details
- Deductor Details: Name, address, TAN (Tax Deduction and Collection Account Number) and PAN (Permanent Account Number) of the employer.
- Challan Details: Information about the TDS challans through which the tax deducted was deposited to the government. This includes challan serial number, date of deposit, TDS amount, and BSR code of the bank branch where tax was deposited.
Annexure II: Deductee Details (Salary Details)
- Deductee Details: Name and PAN of each employee from whom tax has been deducted.
- Salary Details: Breakup of salary paid, including gross income, perquisites, deductions claimed by employees (e.g., under Chapter VI-A), and the taxable income.
- TDS Details: Date of tax deduction, amount of tax deducted, and the section under which tax was deducted (Section 192 for salary).
Due Dates for Filing Form 24Q:
Employers are required to file Form 24Q on a quarterly basis. The due dates are as follows:
- Q1 (April to June): July 31st of the financial year.
- Q2 (July to September): October 31st of the financial year.
- Q3 (October to December): January 31st of the financial year.
- Q4 (January to March): May 31st of the subsequent financial year.
Failure to file Form 24Q by the due date or filing an incorrect statement can attract penalties under the Income-Tax Act.
Issuance of Form 16:
After filing Form 24Q for all four quarters of a financial year, employers generate and issue Form 16 (TDS Certificate for Salary) to their employees. Form 16 is a consolidated certificate that reflects the total salary paid and tax deducted for the entire financial year, based on the data submitted in the quarterly Form 24Q statements. Employees then use Form 16 to file their Income Tax Returns.
It is important to note that Form 24Q is for salary TDS, while Form 26Q is used for non-salary TDS payments and Form 16A is its corresponding certificate.
The e-filing process for Form 24Q ensures that the tax credit is accurately reflected in the employees' Form 26AS, which is essential for smooth ITR filing and avoiding discrepancies.