Form 24Q — Quarterly Salary TDS Return: Preparation, Filing & Form 16 Services

What Does Form 24Q Cover?

Every employer in India carries a quarterly obligation to report tax deducted on employee salaries under Section 192 of the Income Tax Act, 1961, through Form 24Q. This isn't a routine filing exercise — the Q4 return alone requires a full year-end salary computation for every employee, and it's the direct source of the Form 16 employees rely on to file their own returns. At N D Savla & Associates, our Form 24Q service manages this end-to-end, from quarterly TDS computation through to Form 16 issuance.

Errors in Form 24Q don't stay contained to the employer's compliance record — they flow directly into every employee's Form 16 and can complicate their personal ITR filing. Regime selection mistakes, incorrect perquisite valuation, and challan mismatches are the most common sources of these downstream problems.

Form 24Q is the quarterly TDS return every employer must file for tax deducted on salary under Section 192. It has two annexures: Annexure I (challan and deductee-wise TDS summary, filed every quarter) and Annexure II (the complete salary breakup and tax computation for each employee, required only in Q4). Key elements captured include:

• Gross salary, allowances, and perquisites for each employee
• HRA exemption under Section 10(13A) and LTA exemption where claimed
• Deductions under Chapter VI-A based on investment declarations and proofs
• The tax regime chosen — old or new under Section 115BAC
• TDS computed and deposited against each employee for the quarter

For non-salary payments to residents, see Form 26Q, and for a broader view of how TDS interacts with final tax liability, see TDS & Tax Liability in India.

Who Must File Form 24Q?

Form 24Q Due Dates and Annexures

Historical Context: Salary TDS Reporting in India

Section 192 has required employers to deduct tax on salary since the Income Tax Act, 1961 came into force, but for decades the reporting process remained largely manual, with annual TDS certificates prepared by hand and limited cross-verification against what employees actually declared in their returns.

The shift to electronic TDS filing through the NSDL/TIN system, and the later introduction of the TRACES portal, fundamentally changed this — Form 16 is now generated directly from validated Form 24Q data rather than prepared independently by the employer, closing a gap where the TDS certificate and the actual return filed with the department could previously diverge.

The introduction of the new tax regime under Section 115BAC added a further layer of complexity from FY 2020-21 onward, requiring employers to correctly apply whichever regime each employee has declared, with the final reconciliation happening in the detailed Q4 Annexure II computation.

More recently, the CPC-TDS system's automated challan matching against OLTAS has made pre-filing reconciliation considerably more important than it once was — mismatches that might once have gone unnoticed for a filing cycle or two are now flagged almost immediately, generating default notices that need prompt correction.

Step-by-Step Form 24Q Preparation Process

1. Quarterly salary TDS computation

   Calculating TDS for each employee considering gross salary, exemptions, and the declared tax regime.

2. Form 24Q preparation (Q1–Q3)

   Compiling employee master data, quarterly salary breakup, and challan details using RPU or TRACES-approved software.

3. Challan reconciliation

   Matching every TDS challan against OLTAS data before filing to prevent mismatch-driven defaults.

4. Q4 annualisation

   Preparing the detailed year-end computation in Annexure II, incorporating final investment proofs and any year-end perquisites.

5. FVU validation and filing

   Validating the return through the File Validation Utility and filing via TIN-FC or TRACES, generating the PRN acknowledgement.

6. Form 16 generation

   Downloading Part A from TRACES and preparing Part B for distribution to employees by 15th June.

Form 24Q Considerations Across Employer Types

Why Choose N D Savla & Associates for Form 24Q?

• Rigorous challan reconciliation before every filing, preventing the OLTAS mismatches that are the most frequent cause of corrections.
• Careful regime-specific computation in Q4, avoiding the errors that most often trigger employee dissatisfaction or correction statements.
• Coordinated coverage with our Form 26Q and TDS & Tax Liability services for employers who need full TDS compliance.
• Timely Form 16 generation and distribution, well ahead of the 15th June deadline.
• Practical perquisite experience with valuation for ESOPs, company cars, and accommodation — common sources of employer TDS demands.

Form 24Q compliance is most effective when reviewed alongside TDS & Tax Liability in India, so salary TDS decisions fit consistently into each employee's overall annual tax position. Employers running payroll should also review their professional tax return filing obligations, which draw on the same payroll data.

Frequently Asked Questions on Form 24Q