Form 24Q – TDS on Salary: Deduction, Deposit, Return & Acknowledgment Certificate

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  • Last Updated on 28 February, 2022

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Deduction of tax at source, commonly known as TDS, is a mechanism used by the Department to collect the tax. While making payments, every person covered under the scheme of Tax Deduction by Income Tax Department, is required to deduct TDS at prescribed rate from payments to be made.

When is TDS on Salary made?

While an employer makes payment of “Salaries”, the employer has to deduct a portion (TDS) from salary of his employee under section 192 of the Income Tax Act, 1961 and deposit it to the credit of government exchequer. However, in case the total income of the employee is upto Rs. 5,00,000/-, TDS is not required to be deducted.

What is the rate of TDS on Salary? 

The TDS is required to be deducted on the payment of salaries to the employees at the rate that is prescribed as the rate for taxing the income of an individual i.e. the slab rate.

The slab rate for AY 2020-21 is:

Income

Slab Rate

Below 2,50,000

Nil

More than 250,000 but less than 500000

5%

More than 5,00,000 but less than 10,00,000

20%

More than 10,00,000

30%

When is the due date for the deposit of TDS on Salary? 

Deposit of TDS on salary has to made on or before the 7th day of the next month and 30th april for the month of March. 

How the return of TDS on salary has to be filed? 

A statement of return reflecting the details of salary paid to the employees and the TDS deducted on such payments has to be filed quarterly by the employee in FORM 24Q. 

TDS Return – Salary (Form 24Q) Due Date for AY 2022-21:  

QUARTER

QUARTER PERIOD

DUE DATE

1st Quarter

1st April to 30th June

31st July

2nd Quarter

1st July to 30th September

31st October

3rd Quarter

1st October to 31st December

31st January

4th Quarter

1st January to 31st March

31st May

Content of Form 24Q: 

TDS return for salary payment in Form No. 24q is divided into two parts:

Annexure 1: Annexure 1 of Form no. 24Q reflects deductee wise break up of TDS against each particular challan. It has to be filed for all the quarters.

Annexure 2: Annexure 2 of Form no. 24Q reflects the total breakup of the salary, any deductions to be claimed by the employee on the basis of the documents submitted by him, any income other than income taxable under the head “Salaries” and overall tax liability as calculated. It has to be filed only for the last quarter i.e. for the quarter ended 31st March.

Where to file Form 24Q/TDS return for salary payment? 

Form 24Q can either be submitted online or in person. However, for the following class of persons, online filing is compulsory:

    • Government Deductor
    • A company
    • Person requiring Tax Audit u/s 44AB in previous year
    • Deductor where the no of deductees is more than 20 in a statement of a particular quarter.

Preparation of return: 

Return can be prepared online by using NSDL e-Gov e-TDS/TCS Return Preparation Utility (RPU) that can be downloaded free of cost from the website of TIN.  Prepared return has to be submitted to any of the TIN-FCs established by NSDL e-Gov.

Interest attached with Form 24Q/TDS salary return: 

Particulars

Interest Rate

If not DEDUCTED

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

If not DEPOSITED

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

Penalty attached with Form 24Q/TDS salary return: 

 

Section

Minimum penalty

Maximum Penalty

Late filing of 24Q

(Penalty u/s 234E)

@200 per day until filing of return

Maximum penalty can be equal to the amount of TDS deducted

Non- filing of 24Q

Penalty u/s 271H*

10,000/-

1,00,000/-

* No penalty will be charged under 271H if following conditions are fulfilled –

    • TDS is deposited to the government
    • Late filing fees and interest (if any) is also deposited
    • Return is filed before expiry of 1 year from due date

Other related Forms:

1. FORM NO. 16- Annual TDS certificate:

Annual TDS certificate in Form no. 16 is required to be issued by the employer (deductor) to the employees as an acknowledgement of the fact that the tax has been deducted and has been deposited in the government treasury. The details required in Form 16 are submitted by way of submission of Form 24Q. As per Income Tax (6th amendment) for deduction made after 1st April, 2010, Form-16 is to be issued by 15th June of the F.Y immediately following the F.Y in which income was paid and tax deducted.

Issue of Duplicate TDS Certificate:

In case, where the employee misplaces its original certificate, he can approach the employer for issue of a duplicate TDS Certificate. The employer may issue such a duplicate certificate though it is to be specifically mentioned on the certificate that it is a duplicate certificate by the deductor.

2. FORM NO. 27A – Control Chart:

Along with the TDS return in Form 24Q, a separate statement is required to be filed by the tax deductor/ collector in form no 27A for each quarter. It is a summary of TDS/TCS returns which requires the control totals of:

    • No. of deductee/ Party record
    • Amount paid
    • Income tax deducted/ collected at source
    • Tax deposited as per the challan  

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