Filing Form 24Q TDS Return:

Filing Form 24Q is an essential compliance requirement for employers in India who deduct tax at source (TDS) from the salaries paid to employees. This form, which needs to be filed quarterly, contains detailed information about the salaries paid and the TDS deducted. Accurate and timely filing of Form 24Q is crucial to comply with the Income Tax Department’s regulations and avoid penalties. This comprehensive guide will provide a detailed overview of the process, including due dates, penalties, required documents, and step-by-step filing instructions.

What is Form 24Q?

Form 24Q is a quarterly statement that must be filed by employers in India who deduct TDS from their employees’ salaries. This form details the salary payments made to employees and the TDS deducted from these payments. The form consists of two annexures:

• Annexure I: Contains details about the deductor, challans, and deductees.
• Annexure II: Contains details about the salary paid to employees, including various deductions and exemptions claimed under the Income Tax Act.

Importance of Filing Form 24Q

Filing Form 24Q is mandatory for all employers who deduct TDS on salaries. The importance of timely and accurate filing of this form cannot be overstated. Here are some key reasons:

• Compliance with Tax Laws: Filing Form 24Q ensures that the employer complies with the tax laws laid down by the Income Tax Department.
• Transparency and Accuracy: It provides transparency in the TDS process and ensures that the TDS deducted is accurately reflected in the employees’ tax records.
• Avoidance of Penalties: Timely filing helps avoid penalties and interest charges associated with late or incorrect filings.
• Facilitation of Employees’ Tax Returns: It aids in the smooth processing of employees’ income tax returns by providing accurate information about their salary and TDS.

Components of Form 24Q

Form 24Q comprises two parts, Annexure I and Annexure II, which include various details related to the employer, employees, and the TDS deducted. Here is a detailed breakdown of each component:

Annexure I

• Details of the Deductor: This section includes information about the employer, such as the name, address, and TAN (Tax Deduction Account Number).
• Details of the Challans: This section provides details of the challans through which TDS has been deposited to the government. It includes the challan number, date of deposit, and the amount deposited.
• Details of the Deductees: This section contains details of the employees from whom TDS has been deducted. It includes the employee’s PAN, name, amount of TDS deducted, and the amount of TDS deposited.

Annexure II

• Salary Details: This section contains comprehensive details of the salary paid to each employee, including basic salary, allowances, and perquisites.
• Deductions and Exemptions: This section includes details of deductions claimed under various sections of the Income Tax Act, such as Section 80C, 80D, etc.
• Tax Computation: This section provides the computation of the total taxable salary and the tax deducted at source.

Due Dates for Filing Form 24Q

The due dates for filing Form 24Q are set quarterly and must be strictly adhered to avoid penalties. The due dates for each quarter are as follows:

It is important to note that the due date for the fourth quarter is extended to provide additional time for employers to consolidate the annual salary details and compute the final TDS.

Penalties for Late Filing

Failure to file Form 24Q on time can result in significant penalties. The penalties for late filing are as follows:

In addition to these penalties, there may be interest charges for late payment of TDS. The interest is charged at 1.5% per month or part of the month from the date of deduction to the date of deposit.

Documents Required for Filing Form 24Q

Before filing Form 24Q, ensure you have the following documents and information ready:

• PAN Details: PAN of the employer and all employees.
• TAN: TAN of the employer.
• Salary Details: Detailed salary information of all employees, including basic salary, allowances, and perquisites.
• TDS Details: Details of TDS deducted and deposited for each employee.
• Challan Details: Information regarding the challans used for depositing TDS, including the challan number, date, and amount.
• Form 16: Form 16 (Part A and B) for all employees, providing a summary of the salary paid and TDS deducted.

Having these documents handy will facilitate a smooth and error-free filing process.

Step-by-Step Guide to Filing Form 24Q

Preparing the Data

1. Collect Employee Information: Ensure you have accurate and up-to-date details of all employees, including their PAN and salary information.
2. Calculate TDS: Compute the TDS for each employee based on their salary and applicable deductions.
3. Generate TDS Certificates: Prepare Form 16 (Part A and B) for each employee, providing a summary of the salary paid and TDS deducted.

Using TDS Software

Using TDS software simplifies the filing process. Here’s how to use it:

1. Input Details: Enter employee details, salary paid, and TDS deducted into the software.
2. Generate Form 24Q: The software will generate the Form 24Q with all necessary details.
3. Validate: Use the File Validation Utility (FVU) provided by the Income Tax Department to validate the Form 24Q file.

Validation through FVU

1. Download FVU: Get the latest version of the File Validation Utility from the Income Tax Department’s website.
2. Validate File: Upload the generated Form 24Q file to the FVU. The FVU will check for any errors and ensure the file is in the correct format.
3. Correct Errors: If there are errors, correct them in the TDS software and revalidate.

Submission of Form 24Q

1. Login to TRACES: Access the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal.
2. Upload File: Upload the validated Form 24Q file to the TRACES portal.
3. Acknowledge Receipt: After submission, you will receive an acknowledgment receipt with a unique token number for future reference.

Common Mistakes to Avoid

• Incorrect PAN Details: Incorrect PAN details can lead to mismatched records and rejection of the TDS return. Always verify the PAN details of all employees before submission.
• Mismatched Challan Details: Ensure that the challan details, such as the challan number and amount, match with the TDS payments made. Mismatched details can cause discrepancies and rejections.
• Delayed Filing: Late filing of Form 24Q attracts penalties. Make sure to file the return well before the due date to avoid any last-minute issues.
• Inaccurate Salary Data: Double-check the salary details entered in Form 24Q to ensure they match the actual payments made to employees. Inaccuracies can lead to errors in tax computation.
• Non-compliance with Part A and Part B of Form 16: Ensure that Form 16 (Part A and B) is accurately prepared and matches the details in Form 24Q. Non-compliance can cause issues for employees during their tax filing.

Conclusion

Filing Form 24Q is a critical compliance requirement for employers in India. By adhering to the due dates, ensuring accurate data, and following the step-by-step guide provided, employers can avoid penalties and ensure smooth processing of employees’ tax returns. Remember to keep all necessary documents handy and use reliable TDS software to simplify the filing process. For any further queries or assistance, consult a tax professional or refer to the Income Tax Department’s guidelines.