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

Q: What is Form 24Q and who must file it?

Form 24Q is the quarterly salary TDS return under Section 192 filed by every employer who deducts TDS on salary. Contains challan details and employee salary/TDS data. Q4 includes comprehensive Annexure II salary statements and is the basis for Form 16 generation.

Q: What are the due dates for Form 24Q filing?

Q1 (Apr-Jun): 31st July. Q2 (Jul-Sep): 31st October. Q3 (Oct-Dec): 31st January. Q4 (Jan-Mar): 31st May. Late filing attracts Rs. 200 per day under Section 234E.

Q: What details are required in the Q4 Form 24Q that are not needed in Q1-Q3?

Q4 requires Annexure II with complete salary details — all components, exemptions (HRA, LTA), Chapter VI-A deductions based on final proofs, other income reported by employee, total taxable income, tax regime chosen, and final TDS computation.

Q: How does the choice of old vs new tax regime affect Form 24Q?

The employee's declared regime (from Form 12BB) determines TDS computation. Q4 Annexure II must reflect the final regime choice. A wrong regime entry requires a correction statement.

Q: When must Form 16 be issued to employees?

By 15th June after the financial year. Part A is downloaded from TRACES (after Form 24Q filing). Part B is prepared by the employer. Both are combined and distributed to employees for their ITR filing.

Accurate Form 24Q Filing for Employers and Payroll Teams Under Section 192 of the Income Tax Act, 1961

Form 24Q is the quarterly TDS return that every employer (deductor) must file to report Tax Deducted at Source on salary payments made to employees under Section 192 of the Income Tax Act, 1961. It contains a comprehensive record of each employee's salary details — including gross salary, all allowances and perquisites, deductions claimed under Chapter VI-A, HRA and LTA exemptions, the tax regime chosen (old or new under Section 115BAC), and the TDS computed and deposited for the quarter. The Q4 (January to March) return in Form 24Q is the most detailed — it must include the entire year's salary computation for each employee and is the basis on which Form 16 (the annual salary TDS certificate) is generated from the TRACES portal.

Errors in Form 24Q — including incorrect salary figures, wrong tax regime, missed deductions, or challan mismatches — directly affect employees' Form 16 and their ability to file accurate ITRs. Our team provides complete Form 24Q preparation and filing support, working alongside our TDS Return Preparation, TDS Return Filing, Form 26Q, and TDS & Tax Liability services for comprehensive payroll TDS compliance.

Our Form 24Q Preparation & Filing Services

Quarterly Salary TDS Computation

Accurate computation of TDS on salary for each employee every quarter — considering gross salary, HRA exemption under Section 10(13A), LTA exemption, standard deduction, investments declared under Chapter VI-A, and applicable tax slab rates for the chosen tax regime.

Form 24Q Preparation (Q1 to Q4)

Systematic preparation of Form 24Q for all four quarters using RPU (Return Preparation Utility) or TRACES-approved software — with correct employee master data, quarterly salary breakup, section and rate codes, and challan details.

Q4 Annualisation & Year-End Computation

Detailed year-end salary TDS computation for each employee in Q4 — accounting for all actual income, final investment proofs, year-end perquisites, and leave encashment — ensuring correct year-end TDS deduction and nil balance demand.

Challan Reconciliation & OLTAS Matching

Reconciliation of all quarterly TDS challans (ITNS 281) with OLTAS data before filing to ensure 100% challan matching — preventing the challan mismatch issues that are the most frequent cause of Form 24Q corrections.

Form 24Q Filing & FVU Validation

Filing of the validated Form 24Q through the TIN-FC or online TRACES portal, including FVU (File Validation Utility) validation, generation of the acknowledgement number (PRN), and preservation of all filing records.

Form 16 Generation & Distribution

Downloading of Part A of Form 16 from TRACES (reflecting quarterly TDS deposited) and preparation of Part B (annual salary breakup and tax computation) for distribution to employees by 15th June each year.

Why Accurate Form 24Q Filing Matters for Every Employer

Form 16 is generated directly from Form 24Q data — errors in Form 24Q produce inaccurate Form 16s that cause employee ITR filing complications
Late filing fee of Rs. 200 per day under Section 234E is levied automatically and cannot be waived — applies equally to large and small employers
Incorrect year-end TDS computation in Q4 leads to excess deduction (employee dissatisfaction) or short deduction (employer liability)
New vs old tax regime choices must be correctly reflected in Q4 Form 24Q — errors require costly corrections and can affect employee refunds
Perquisite valuation (ESOP, car, accommodation, loans) requires expert knowledge — errors lead to short deduction demands on the employer
CPC-TDS system automatically raises defaults for challan mismatches — professional challan reconciliation before filing prevents these entirely

Frequently Asked Questions – Form 24Q Salary TDS Return

What is Form 24Q and who must file it?

Form 24Q is the quarterly TDS return for tax deducted on salary payments (Section 192). Every employer — company, firm, LLP, trust, government body, or individual who pays salary — must file Form 24Q each quarter if they have deducted TDS on salary. It contains two annexures: Annexure I (challan details and deductee-wise TDS summary for the quarter) and Annexure II (complete salary breakup and tax computation for each employee — required only in Q4). Form 24Q is the basis on which the TRACES portal generates Part A of Form 16 for employees.

What are the due dates for Form 24Q filing?

Form 24Q is filed quarterly with the following due dates: Q1 (April to June) — 31st July; Q2 (July to September) — 31st October; Q3 (October to December) — 31st January; Q4 (January to March) — 31st May. The Q4 due date is 31st May (not 31st July like other returns) to allow timely generation and issuance of Form 16 to employees by 15th June. Late filing attracts Rs. 200 per day in fees under Section 234E from the due date until the date of filing.

What details are required in the Q4 Form 24Q that are not needed in Q1-Q3?

Unlike Q1 to Q3, the Q4 Form 24Q requires completion of Annexure II — the comprehensive salary statement for each employee. This includes: gross salary components (basic, HRA, special allowance, perquisites, leave encashment, gratuity); all exemptions claimed (HRA, LTA, standard deduction of Rs. 75,000); the deductions allowed under Chapter VI-A (80C, 80D, 80G, 80TTA, etc.) based on final investment proofs; other income sources reported by the employee (such as interest income or rental income); the total taxable income; and the final TDS computation including the tax regime chosen. This is the most detailed TDS computation of the year.

How does the choice of old vs new tax regime affect Form 24Q?

Under Section 115BAC, employees can opt for either the new tax regime (lower slab rates, no deductions) or the old regime (higher slab rates with all deductions). The employee's choice is declared in Form 12BB submitted to the employer. The employer must compute TDS using the regime declared by the employee. In Q4, the final TDS computation in Annexure II must reflect the employee's final regime choice for the year. The applicable regime significantly affects the quantum of TDS and the Form 16 — a wrong regime entry requires a Form 24Q correction statement to be filed.

When must Form 16 be issued to employees and how is it generated?

Form 16 must be issued to all employees from whom TDS has been deducted by 15th June of the year following the financial year. It has two parts: Part A (generated from TRACES after Form 24Q is filed and processed — shows quarterly TDS deducted and deposited) and Part B (prepared by the employer — shows the complete salary breakup, deductions, and tax computation). The employer downloads Part A from TRACES using a digital signature, attaches it to Part B, and distributes the complete Form 16 to employees. Employees use Form 16 to file their ITR and claim TDS credit.

Need Accurate Form 24Q Filing and Timely Form 16 for Your Employees?

Our payroll TDS specialists handle complete Form 24Q compliance — from quarterly computation to annual Form 16 generation and distribution.