24Q TDS Return Meaning: The CEO’s Playbook To Staying Compliant

Managing employee salaries in India requires tracking and deducting TDS (Tax Deducted at Source) under Section 192 of the Income Tax Act. Employers must report these deductions quarterly in Form 24Q to ensure employees receive tax credits and can download their Form 16 certificates.

Understanding Form 24Q details, filing schedules, and accounting entries is essential to prevent compliance defaults.

1. What Is Form 24Q: Legal Basis and Employer Obligations

Under Section 200(3) of the Income Tax Act, every office or corporate employer who pays salaries and deducts TDS u/s Section 192 must file Form 24Q quarterly.

This return lists every employee's PAN, their salary earnings, tax regime selected, and the TDS deposited.

2. Inside Form 24Q: Structure of Annexure I and Annexure II

Form 24Q is divided into two parts:

• Annexure I (Challan Details): Filed for all four quarters (Q1-Q4). It details the payment challan numbers, dates, and corresponding employee tax splits.
• Annexure II (Salary details): Filed **only in the fourth quarter (Q4)**. It details the complete annual salary breakdown, house rent allowances, deductions u/s Section 80C, 80D, interest on housing loans, and total tax liability computations.

3. Form 24Q Due Dates & Deposit Schedules

While TDS deposits must be made monthly (by the **7th of the following month**, except for March which is April 30), return filings follow a quarterly schedule:

4. Penalties for Late Filing or Incorrect Returns

Missing return deadlines triggers statutory charges:

• Section 234E Late Fee: **₹200 per day** for each day the return remains unsubmitted, capped at the total TDS deducted for that quarter.
• Section 201(1A) Interest: 1.5% interest per month from the date tax was deducted to the date of actual return submission.
• Section 271H Penalty: A separate penalty between **₹10,000 and ₹1,00,000** for incorrect filings or delays exceeding one year.

5. Case Study: Processing Salary TDS Provisions in Tally

A company has a monthly gross salary expense of **₹10,00,000**. The aggregated TDS on salary (computed based on individual employees' tax slabs) is **₹80,000**.

To manage payroll compliance:

1. The accountant books the salary expense, provisioning ₹80,000 as TDS payable.
2. The net salary payable to employees is ₹9,20,000.
3. The TDS of ₹80,000 is deposited to the government using a tax challan before the 7th of the following month.
4. The entry is booked in Tally:

Entry: Booking Monthly Payroll (F7 Journal Voucher)
Debit:  Salary Expense Account (P&L) ₹10,0,0000
Credit: Employee Salary Payable Account            ₹9,20,000
Credit: TDS Payable u/s 192 (Salary) Account         ₹80,000

6. Configuring Salary TDS in Tally Prime

To enable payroll TDS automation in Tally: