What is Form 24Q?
A TDS is deducted from the employee’s salary. Every employee must file a salary TDS return in Form 24Q every quarter. It is a mandatory statement required to be submitted by employees.
What are the Features of Form 24Q
Timeline- Form 24Q must be filed by employees every quarter
Structure- Annexure I entails the details of the employer, employees, and payment challans. Annexure II must entail a detailed breakup of the salary paid, including allowances, perquisites, and deductions.
Submission Requirements- Employers must file the statement on the due dates, ensuring that employees can claim their tax credit and get their Form 16 issued.
Fines: Late submission will incur a penalty of Rs 300 until the statement is submitted.
Regime Declaration- The document must mention whether the employee has chosen the old or the new tax regime.
What is the Importance of Form 24Q?
1. Adheres to Compliance laws
Filing the document ensures that employers comply with the necessary tax laws and facilitate accurate reporting of salary payments.
2. Monitors Tax Deductions
The form tracks the accurate amount of tax deducted from an employee’s salary, presenting a detailed record of the tax deducted, fostering transparency.
3. Criteria for Form 16 Generation
The information provided in Form 24Q is the foundation for generating Form 15. An accurate Form 24Q filing will result in proper Form 16 generation.
4. Safeguards from Penalties
Timely submission of the document prevents employers from facing challenges like paying fines, intimation from the tax authorities, interest charges, etc.
5. Enhances Relationships
Accuracy in reporting of tax payments and salaries nurtures a positive relationship between an employer and employee, building transparency and trust.
Frequently Asked Questions
1. Who files Form 24Q?
All employers (companies, partnerships, individuals, trusts, etc.) who have deducted TDS on salary payments are required to file this form.
2. What happens if Form 24Q is filed late?
A late fee of ₹200 per day is applicable under Section 234E until the return is filed.
3. What is the consequence of not providing a PAN?
If an employee does not furnish a PAN or gives an invalid PAN, TDS will be deducted at a higher rate (usually 20%) under Section 206AA.
4. What are the Due Dates for filing Form 24Q?
Quarter 1 (Apr-Jun): July 31
Quarter 2 (Jul-Sep): October 31
Quarter 3 (Oct-Dec): January 31
Quarter 4 (Jan-Mar): May 31 (Includes Annexure II)
5. Can Form 24Q be revised?
Yes, a correction return can be filed for errors like incorrect PANs or challan mismatches.
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