24Q TDS

Tax Deducted at Source (TDS) is an integral part of India's tax system. Among the various forms and returns related to TDS, Form 24Q is crucial for employers. This blog aims to provide a comprehensive understanding of 24Q TDS, its significance, the process of filing, and the key details employers need to know.

What is Form 24Q?

Form 24Q is a quarterly statement submitted by employers to the Income Tax Department of India. It captures the details of salary payments and the TDS deducted on these payments throughout the financial year. The form must be filed for each quarter of the financial year, ensuring accurate and timely reporting of salary income and the corresponding TDS.

Key Features of Form 24Q:

1. Quarterly Filing: Employers are required to file Form 24Q for each quarter of the financial year. This means there are four submissions: for the quarters ending in June, September, December, and March.
   
   
2. Detailed Information: The form contains detailed information about the employer, the deductor, the challan (payment) details, and the deductee (employee) details. This includes:

• Employer's details: Name, address, and TAN (Tax Deduction and Collection Account Number).
• Deductor's details: Specifics of the person responsible for deducting and depositing TDS.
• Challan details: Information about the TDS payments made to the government, including the BSR code, date of payment, and the amount paid.
• Deductee details: Comprehensive details of each employee, including their PAN (Permanent Account Number), total salary paid, and TDS deducted.

3. Annexure I and Annexure II:

• Annexure I: Captures quarterly details of the TDS deposited by the employer for all employees.
  
  
• Annexure II: Provides a detailed breakup of the salary paid to each employee, including allowances, perquisites, deductions under Section 80C, and tax computation as per the income tax slabs.
  
  

4. Ensures Compliance: Filing Form 24Q ensures employers comply with TDS regulations under the Income Tax Act, 1961, helping avoid penalties and legal issues.
   
   
5. Employee Benefits: Proper filing ensures that the TDS deducted is accurately reflected in employees' Form 26AS, facilitating a smooth tax filing process.
   
   

Annexure I of Form 24Q: Detailed Overview

Annexure I of Form 24Q provides a detailed record of Tax Deducted at Source (TDS) for each deductee, offering insights into salary payments and tax deductions.

Details of Challan(s):

1. BSR Code of Branch: Identifies the branch where the TDS payment was deposited.
2. Challan Serial Number: Unique identifier for each TDS payment transaction.
3. Date of Challan Deposition: Date when the TDS payment was made to the government.
4. Total Amount in Challan: Total of the TDS amount deposited through the challan.
5. TDS Amount Allocated Among Deductees: A portion of the TDS amount is allocated to each deductee.
6. Interest Amount Allocated Among Deductees: If applicable, details of interest allocated among deductees.

Details of Deductee(s):

1. Employee Reference Number (if available): Unique identifier for each employee.
2. PAN of the Employee: Permanent Account Number used for tax purposes.
3. Name of the Employee: Full name as per official records.
4. TDS Section Code: Specific section of the Income Tax Act governing TDS deduction.
5. Date of Payment/Credit: The date when salary or payment was credited to the employee's account.
6. Amount Paid or Credited: Total amount paid or credited to the employee, including salary and allowances.
7. TDS Amount: Deducted amount as per TDS regulations.
8. Education Cess: Additional levy applied on the TDS amount as per tax laws.

Justification for Non-Deduction or Reduced Deduction of TDS:

Employers are required to provide valid reasons in Annexure I for any instances where TDS is not deducted or is deducted at a rate lower than stipulated by the Income Tax Act. To ensure compliance and transparency in TDS reporting and to mitigate potential penalties for incorrect filings.

Due Dates for Filing Form 24Q

Penalty for Late Submission of Form 24Q

Late submission of Form 24Q, the quarterly TDS statement, can result in penalties under the Income Tax Act, 1961. Get to know the details:

Penalty under Section 234E

• Penalty: ₹200 per day until the TDS return is filed, up to the total amount of TDS due.

Penalty under Section 271H

• Amount: ₹10,000 to ₹1,00,000, depending on the severity of the delay.
• Applicability: If TDS is not deposited, late filing charges are unpaid, or the return is filed more than one year after the due date.

Exemptions

• Exceptions: No penalties if TDS is deposited, late filing charges are paid, or the return is filed within one year of the due date.

Importance of Timely Compliance

Timely submission of Form 24Q ensures compliance with tax regulations, avoids penalties, and facilitates smooth tax processes for employers and employees alike.

Streamline TDS Compliance with Taxilla e-TDS

Taxilla e-TDS simplifies Tax Deducted at Source (TDS) compliance, offering a robust solution tailored to meet your business needs:

Automated Filing and Accuracy

Automate Form 24Q and other TDS filings seamlessly with Taxilla e-TDS. Integrate with your payroll systems for error-free data extraction and ensure compliance with Income Tax Department guidelines.

Comprehensive Compliance

Ensure adherence to statutory requirements with detailed Annexure I and II generation. Taxilla e-TDS handles challan details, deductee information, and TDS amounts, facilitating smooth audits and compliance checks.

Secure Data Handling

Protect sensitive tax data with stringent security measures. Taxilla e-TDS encrypts data during transmission and storage, ensuring confidentiality and compliance with regulatory standards.

Real-Time Insights and Reporting

Gain real-time visibility into TDS liabilities and filing statuses. Monitor deductions, challan statuses, and compliance metrics with intuitive reporting features.

Cost Efficiency and Time Savings

Reduce manual effort and enhance productivity with automated TDS processes. Taxilla e-TDS saves time and resources, translating into cost savings and streamlined operations.

Final Thoughts

Form 24Q TDS is crucial for ensuring accurate reporting of salary income and TDS deductions by employers in India. Timely compliance with its requirements not only avoids penalties but also facilitates smooth tax processes for both employers and employees. Streamlining TDS filing with solutions like Taxilla e-TDS enhances efficiency and compliance, supporting robust financial management practices.