Form 24Q

Form 24Q is a mandatory quarterly TDS (Tax Deducted at Source) return that employers in India must file for tax deducted on salaries paid to employees. For HR, payroll, and finance leaders, accurate Form 24Q filing is critical not only for statutory compliance but also for maintaining employee trust, audit readiness, and smooth year-end tax reporting.

TL;DR

• Form 24Q is a quarterly TDS return for tax deducted on salaries.
• It includes employee-wise salary and TDS details.
• Filing is mandatory for all employers deducting TDS under Section 192.
• Incorrect or delayed filing can lead to penalties and employee tax issues.

What Is Form 24Q?

Form 24Q is a quarterly statement submitted to the Income Tax Department by employers who deduct TDS on employee salaries under Section 192 of the Income Tax Act, 1961. It reports how much salary was paid, how much tax was deducted, and how much tax was deposited with the government during a specific quarter.

In simple terms, Form 24Q acts as the official bridge between payroll processing and employee tax records. The information filed here reflects directly in employees' Form 26AS and AIS (Annual Information Statement). Any mismatch can cause tax filing issues for employees making accuracy non-negotiable for HR and payroll teams.

For organizations, Form 24Q is not just a tax form it's a credibility document that demonstrates statutory discipline and payroll governance.

Who Is Required to File Form 24Q?

Any employer, private company, public sector organization, startup, or partnership firm that pays salary and deducts TDS is required to file Form 24Q.

This obligation applies regardless of:

• Company size
• Number of employees
• Whether employees are on permanent or contractual payroll (if treated as salary)

If salary is paid and TDS is deducted under Section 192, Form 24Q filing is mandatory. Non-filing or incorrect filing can attract penalties and compliance scrutiny.

For HR leaders, this means Form 24Q responsibility is tightly linked with payroll accuracy, employee declarations, and tax computation processes.

Structure of Form 24Q: Annexure I and Annexure II

Annexure I - Quarterly Salary & TDS Details

Annexure I contains employee-wise and challan-wise details for each quarter. It includes:

• PAN of employee
• Salary paid during the quarter
• TDS deducted and deposited
• Challan details (BSR code, date, amount)

This annexure is required for all four quarters and forms the core of Form 24Q compliance.

Annexure II - Annual Salary Breakup

Annexure II is filed only in the fourth quarter (Q4). It provides a complete annual breakup of:

• Gross salary
• Exemptions (HRA, LTA, etc.)
• Deductions under Chapter VI-A
• Total taxable income
• Total TDS for the year

Annexure II is critical because it becomes the basis for issuing Form 16 to employees.

Pro Tip: Errors in Annexure II directly impact Form 16 accuracy and employee income tax filings.

Due Dates for Filing Form 24Q

Timely filing ensures smooth Form 16 generation and avoids year-end compliance pressure.

Why Form 24Q Is Critical for HR and Payroll Teams

Form 24Q directly impacts both organizational compliance and employee experience. From an HR standpoint, it is one of the most sensitive payroll deliverables.

Key reasons why Form 24Q matters:

• Ensures employee TDS reflects correctly in Form 26AS
• Enables accurate Form 16 issuance
• Prevents employee tax notices and disputes
• Protects the organization from penalties and audits

According to tax compliance data, one of the most common employee grievances during tax season is mismatch in Form 26AS often caused by incorrect Form 24Q filings.

Penalties for Non-Compliance or Errors in Form 24Q

Failure to file or incorrect filing of Form 24Q can attract multiple consequences:

Late Filing Fee (Section 234E)

₹200 per day of delay, subject to the total TDS amount.

Penalty (Section 271H)

₹10,000 to ₹1,00,000 for incorrect or non-filing, in severe cases.

Employee Impact

Incorrect Form 24Q data leads to:

• Mismatch in Form 26AS
• Delayed or incorrect Form 16
• Employee tax notices and dissatisfaction

For leadership teams, these issues don't just affect compliance, they damage employer credibility.

Common Challenges in Form 24Q Filing

Data Inconsistencies

Mismatch between payroll records, challan payments, and employee PAN details is a frequent issue.

Manual Errors

Spreadsheet-based payroll systems increase the risk of incorrect calculations, missed deductions, or wrong PAN entries.

Year-End Pressure

Most errors surface during Q4 when Annexure II and Form 16 preparation begin often under tight deadlines.

These challenges highlight why Form 24Q should be managed as a continuous process, not a quarterly fire drill.

Role of HR Technology in Form 24Q Compliance

Modern HRMS and payroll systems simplify Form 24Q filing by automating:

• Salary and TDS calculations
• Challan mapping
• PAN validation
• Quarterly and annual report generation

Automation reduces errors, ensures consistency, and keeps records audit-ready. Platforms like Qandle integrate payroll, TDS, and statutory reporting helping HR teams file Form 24Q accurately and on time without manual stress.

Form 24Q and Employee Trust

Employees may never see Form 24Q but they feel its impact. Accurate filings ensure smooth tax filing, timely Form 16 delivery, and peace of mind during assessment season.

When Form 24Q is handled well, HR avoids last-minute corrections, employee escalations, and leadership embarrassment making it a silent but powerful pillar of payroll excellence.

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FAQ's

1. What is Form 24Q used for?

Form 24Q is used to report TDS deducted on salaries paid to employees on a quarterly basis.

2. Is Form 24Q mandatory for all employers?

Yes, if an employer deducts TDS on salary under Section 192, Form 24Q filing is mandatory.

3. What is the difference between Annexure I and Annexure II in Form 24Q?

Annexure I is quarterly salary and TDS data, while Annexure II is an annual salary breakup filed only in Q4.

4. What happens if Form 24Q is filed late?

Late filing attracts a fee of ₹200 per day and may lead to penalties under the Income Tax Act.

5. Does Form 24Q affect Form 16?

Yes. Form 16 is generated based on data filed in Form 24Q, especially Annexure II.

6. Can Form 24Q be revised after filing?

Yes. Employers can file a revised Form 24Q to correct errors or omissions.