24Q TDS Return

Intro to 24Q TDS Return?

Form 24Q is a quarterly TDS (Tax Deducted at Source) return that employers must file for tax deducted from employee salaries. This compliance requirement ensures proper reporting of salary payments and tax deductions to the Indian Income Tax Department. Accurate and timely 24Q filing is essential for maintaining tax compliance and avoiding penalties.

Definition of 24Q TDS Return

Form 24Q is a quarterly statement filed by employers to report TDS deducted on salary payments to employees under Section 192 of the Income Tax Act. The return contains details of salaries paid, tax deducted, and deposited with the government during each quarter.

Employers must submit 24Q returns electronically through the Income Tax Department’s TRACES portal. Each quarterly return covers three-month periods: April-June (Q1), July-September (Q2), October-December (Q3), and January-March (Q4). The fourth quarter return includes an annual summary with complete financial year data.

The form requires comprehensive information including employee PAN details, salary breakdowns, tax computations, challan information for deposited TDS, and employer identification details. Accurate reporting ensures employees receive proper credit for taxes deducted when filing their individual returns.

Disclaimer: This information provides general guidance on 24Q TDS returns. Organizations should consult qualified tax professionals or chartered accountants for specific compliance requirements and filing assistance.

Importance of 24Q TDS Return in HR

Filing accurate 24Q returns is critical for HR and payroll teams managing tax compliance. First, it fulfills mandatory legal obligations under Indian tax law. Non-compliance or delayed filing attracts penalties, interest charges, and potential scrutiny from tax authorities.

Second, proper 24Q filing protects employee interests. When returns are filed correctly and timely, employees receive Form 16 (annual salary and tax certificate) on schedule. This document is essential for employees to file their income tax returns without complications.

Third, systematic TDS reporting demonstrates organizational governance and financial discipline. It creates transparent audit trails for tax authorities and internal controls. Companies maintaining strong compliance records face fewer regulatory challenges and build stakeholder trust.

Additionally, efficient 24Q processes reduce administrative burden and errors. Understanding TDS calculation methodologies helps HR teams implement accurate payroll systems. Modern HRMS solutions automate much of this complexity, allowing HR professionals to focus on strategic initiatives rather than manual compliance tasks.

Examples of 24Q TDS Return

Example 1: Standard Quarterly Filing
A mid-sized technology company with 150 employees processes monthly payroll and deducts TDS based on employee tax declarations. At the end of Q1 (June), the payroll team compiles salary data for April, May, and June, verifies TDS deductions, and files Form 24Q electronically. The return includes PAN details for all employees, monthly salary breakdowns, and challan references for TDS deposits made during the quarter.

Example 2: Correction through Revised Return
During Q3 filing, a manufacturing firm discovers discrepancies in previously submitted Q2 data due to incorrect PAN entries for two new employees. The HR team files a revised 24Q return for Q2, correcting the errors before submitting the regular Q3 return. This proactive correction prevents mismatches during employee tax filing and avoids potential notices from the tax department.

Example 3: Annual Fourth Quarter Filing
In April, after the financial year ends, a retail chain prepares its Q4 24Q return covering January through March. Unlike other quarters, this return includes annexures with annual salary statements for all employees. The team reconciles total annual TDS deducted with deposits made throughout the year, ensuring complete accuracy before generating and distributing Form 16 to employees for their tax filing.

How HRMS Platforms like Asanify Support 24Q TDS Return

Modern HRMS and payroll platforms significantly simplify 24Q TDS return compliance through automation and integrated workflows. These systems eliminate manual data compilation and reduce errors in tax reporting.

Automated TDS calculation ensures accurate tax deduction based on employee declarations, exemptions, and applicable tax slabs. The system maintains updated tax rules and automatically adjusts calculations when regulations change, reducing compliance risks.

Centralized employee data management stores all required information including PAN details, salary components, tax declarations, and investment proofs. This eliminates data entry duplication and ensures consistency between payroll processing and TDS reporting.

Integrated challan management tracks TDS deposits and links them to specific pay periods and employees. When filing 24Q, the system automatically populates challan details, ensuring accurate reconciliation between deductions and deposits.

Platforms like Asanify generate 24Q-ready files in prescribed formats for direct upload to TRACES. The system validates data before export, flagging missing PAN numbers, mismatched amounts, or other potential errors. This pre-validation significantly reduces rejection rates and resubmission requirements.

Furthermore, comprehensive attendance management capabilities ensure accurate salary calculations that form the foundation of correct TDS reporting. Automated Form 16 generation from filed 24Q data completes the compliance cycle efficiently.

FAQs about 24Q TDS Return

What is the due date for filing Form 24Q?

Form 24Q must be filed by the last day of the month following each quarter end. Q1 (April-June) is due by July 31, Q2 (July-September) by October 31, Q3 (October-December) by January 31, and Q4 (January-March) by May 31. These deadlines are strictly enforced with penalties for late filing.

What happens if TDS is deducted but 24Q is not filed?

Failure to file 24Q despite deducting TDS results in penalties under Section 234E of the Income Tax Act, typically Rs. 200 per day of delay. Additionally, employees cannot receive Form 16, creating difficulties for their tax filing. Prolonged non-compliance may trigger tax department notices and potential prosecution.

Can 24Q be revised after filing?

Yes, employers can file revised 24Q returns to correct errors in previously submitted returns. Revisions should be filed promptly upon discovering mistakes such as incorrect PAN details, salary amounts, or TDS figures. The revised return replaces the original filing for that quarter.

What details are required to file Form 24Q?

Form 24Q requires employer TAN and PAN, employee PAN and personal details, quarterly salary breakdowns by month, tax computations showing deductions and exemptions, TDS deducted amounts, challan details of TDS deposited including BSR code and dates, and verification through digital signature or authorized representative.

Is 24Q required if no TDS was deducted during the quarter?

If an employer has employee salaries below the taxable threshold and no TDS is deducted for the entire quarter, filing 24Q is generally not required for that period. However, if even one employee has TDS deducted, the return must include all employees with their salary details, regardless of whether tax was deducted for each individual.