What is Form 24Q ?
Form 24Q is a quarterly statement filed by employers in India to report the Tax Deducted at Source (TDS) on salaries paid to employees. It is submitted to the Income Tax Department and contains detailed information about the TDS deducted and deposited by the employer during a specific quarter.
Structure of Form 24Q:
Form 24Q is divided into two parts:
1. Part A:
Contains summary details about the TDS deductions.
Information included:
TAN (Tax Deduction and Collection Account Number)
of the employer.
Name and address of the employer.
Details of tax deducted and deposited (challan details such as challan number, BSR code, and date of deposit).
Total amount paid and TDS deducted in the quarter.
2. Part B:
Provides detailed salary information for each employee.
Information included:
PAN (Permanent Account Number) of the employee.
Employee’s name and salary details.
Breakup of salary (basic, allowances, perquisites, etc.).
Deductions under Chapter VI-A (e.g., Section 80C for investments, Section 80D for health insurance).
Taxable income and TDS deducted.
Filing Frequency:
Employers must file Form 24Q quarterly (four times a year):
Q1: April to June
Q2: July to September
Q3: October to December
Q4: January to March (includes details of the entire financial year and employee salary information for the year).
How to File Form 24Q:
Prepare the form using the Return Preparation Utility (RPU) provided by the Income Tax Department or other authorized software.
Validate the form using the File Validation Utility (FVU).
Submit the form online through the TRACES portal or offline at authorized TIN-FC centers.
Importance of Form 24Q:
Compliance: Ensures the employer complies with TDS regulations.
Transparency: Provides detailed salary and tax information for employees.
Tax Filing for Employees: Part B of Form 24Q helps employees file their Income Tax Returns (ITR) accurately.
Legal Requirement: Non-compliance with Form 24Q filing can result in penalties for employers.
Penalties for Non-Compliance:
Late Filing Fee: ₹200 per day for delays in filing.
Interest on Non-Payment: Interest on late payment of TDS.
Penalty for Incorrect Filing: Additional penalties if incorrect details are submitted.
Form 24Q is a crucial tool for employers to report TDS on salaries and ensures seamless compliance with Indian income tax laws.