Filing salary TDS (Tax Deducted at Source) for an employer involves submitting a specific form to the Income Tax Department on a regular basis.
The primary method for firms to file salary TDS is by submitting Form 24Q every quarter of the financial year.
Understanding Salary TDS Filing
When an employer pays a salary to an employee, they are required to deduct a portion of it as TDS if the salary exceeds the basic exemption limit. This deducted tax is then deposited with the government, and the employer must file a statement detailing these deductions.
The filing of salary TDS is crucial for both the employer and the employee. It ensures that the tax deducted is properly accounted for and linked to the employee's PAN (Permanent Account Number), allowing them to claim credit for the TDS when filing their income tax return.
The Role of Form 24Q
According to the provided information, the core of filing salary TDS lies with Form 24Q.
- The firm will need to give the form 24Q each quarter of the financial year to show the TDS for the salary.
- This form serves as the quarterly statement for tax deducted at source from salaries.
- The Form 24Q contains details about the salary paid and the TDS deducted. Specifically, the reference states that: "The Form 24Q can show you the total remuneration that is paid to the deductee and the TDS deducted from the employee's salary."
What Form 24Q Contains
Form 24Q is comprehensive and includes:
- Details of the deductor (employer).
- Details of the deductee (employee).
- Details of salary paid.
- Details of tax deducted and deposited.
The form is divided into two annexures:
- Annexure I: Contains details of the deductees (employees), salary paid, TDS deducted, and tax deposited.
- Annexure II: Required only in the last quarter (Q4). It includes details of salary paid, deductions claimed by the employee (like HRA, LTA, investments under Chapter VI-A), and the tax computed for the financial year. This annexure helps in calculating the correct TDS for the entire year.
Filing Frequency: Quarterly
TDS on salary must be filed quarterly. This means an employer needs to prepare and submit Form 24Q four times during a financial year (April to March).
Here are the typical due dates for filing Form 24Q quarterly statements:
| Quarter | Period | Due Date |
|---|---|---|
| Quarter 1 (Q1) | April to June | July 31st |
| Quarter 2 (Q2) | July to September | October 31st |
| Quarter 3 (Q3) | October to December | January 31st |
| Quarter 4 (Q4) | January to March | May 31st |
Note: Due dates can be extended by the government, but these are the standard dates.
The Basic Filing Process
While the reference specifically highlights the use of Form 24Q quarterly, the typical process involves:
- Deducting TDS: Calculate and deduct TDS from employees' salaries based on their income and investment declarations.
- Depositing TDS: Deposit the deducted TDS with the government using Challan 281 by the 7th of the following month (or 30th April for March deductions).
- Preparing Form 24Q: Compile all the required information for the quarter in Form 24Q. This involves using TDS software or utility provided by the Income Tax Department.
- Filing Form 24Q: Submit the prepared Form 24Q online through the NSDL (now Protean) or TIN-FC portal.
- Issuing TDS Certificates: After filing the Q4 statement and the annual return (effectively covered by Q4 filing for salary), issue Form 16 (TDS certificate) to employees by June 15th of the assessment year. Form 16 is a crucial document for employees to file their own tax returns.
In summary, filing salary TDS primarily involves an employer collecting the necessary salary and tax deduction details and reporting them quarterly using Form 24Q.
