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Form 24Q – TDS on Salary Payment

Form 24Q – TDS on Salary Payment

A reference to Form 24Q - TDS on Salary Payments

In this post, We will discuss Form 24Q, the TDS return on salary payment. As well as the penalty, interest, and late filing. Let’s look at each section in more detail: 

What is Form 24Q?

The company will deduct TDS under Section 192 when paying an employee’s monthly salary. To report the TDS for the salary, the company must submit Form 24Q each quarter of the financial year. You must include information on the deductor, the deductees, the challans, and the salary TDS. Companies should only fill out Form 24Q when required.

Additionally, this Form must be submitted with Annexures I and II. For each of the year’s four quarters, Annexure I must be completed. Only for the year’s last quarter must Annexure II be filed.

Annexure I and Annexure II of Form 24Q

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

  • Annexure I: includes information on the salary received and the TDS deducted from that amount. It must be presented for all four quarters of the financial year.
  • Annexure II: It consists of information on the overall division of salary, any deductions claimed by the employee, and any additional revenue. The employer should compute the total tax liability in this case. Annexure II is only required for the last quarter of the financial year

Form 24Q due date

The original due dates for filing TDS Returns for the financial year 2023-2024 are as follows:

Quarter 

Quarter Period 

Last day to file TDS returns 

1st Quarter 

From 1st April 2023 to 30th June 2023

31st July 2023

2nd Quarter

From 1st July 2022 to 30th September 2023

31st October 2023

3rd Quarter

From 1st October 2023 to 31st December 2023

31st January 2024

4th Quarter

From 1st January 2024 to 31st March 2024

31st  May 2024

Penalty and interest of late filing of form 24Q

The different types of penalty and interest are:

  • Late filing fee – This will be applicable if you do not file Form 24Q on time.
  • Interest -This is applicable if you do not deposit the TDS amount on time.
  • Penalty – This is applicable if the Form is not filed within one year of the due date.

Interest rate

                PARTICULARS

                INTEREST RATE

If not DEDUCTED

1% per month/ part of the month from the deduction due date to the actual date of deduction

If not DEPOSITED

1.5% per month/part of the month from the actual deduction date to the date of payment

Penalty

SECTION

MINIMUM PENALTY

MAXIMUM PENALTY

Late filing of 24Q

(Penalty u/s 234E)

200 per day until the filing of return

The maximum penalty can be equal to the amount of TDS deducted

Non- filing of 24Q

Penalty u/s 271H

Rs.10,000

1 lakh

 

NOTE: There will be no penalty under 271H if:

  • You deposit TDS to the government.
  • Late filing fees and interest is also deposited.
  • Return is filed before the expiry of 1 year from the due date.

Format of TDS form 24Q

Two important points to note while preparing Form 24Q are:

  • You must prepare your e-TDS/e-TCS to return only in an ASCII format.
  • The file extension for the e-return should be ‘.txt.’

You can prepare your e-TDS/e-TCS return using any TDS preparation software or the NSDL e-TDS Return Preparation Utility.

Once you create the file according to the approved format, you need to validate it. You can validate Form 24Q using the File Validation Utility (FVU), an NSDL e-Gov /platform.

If the Form has any mistakes, then FVU will provide you with the report containing those mistakes. You can correct those mistakes and re-verify them. You must furnish the error-free file and validate it using the FVU to the TIN-FC.

And with that, we end our discussion on Form 24Q– TDS on salary payment. If you have any questions, drop them in the comment section below.