What is Form 24Q?
Form 24Q is the quarterly statement employers file with the Income Tax Department for TDS deducted on salary payments under Section 192. It contains employee-wise details of salary paid and tax deducted during the quarter.
Quarterly due dates (FY 2025-26)
- Q1 (Apr–Jun): 31 July
- Q2 (Jul–Sep): 31 October
- Q3 (Oct–Dec): 31 January
- Q4 (Jan–Mar): 31 May
Q4 is the annual reconciliation — it includes Annexure II with full-year salary details for every employee. Q1–Q3 contain only Annexure I (challan-wise TDS deductions).
Annexure I — challan-wise details
For every TDS challan paid during the quarter, list:
- Challan serial number, BSR code, date of deposit
- Total TDS amount deposited
- Section codes (192 for salary)
- Employee-wise PAN, salary paid, TDS deducted, date of credit
Annexure II — full-year salary breakdown (Q4 only)
For every employee on payroll during the year, Q4 Annexure II requires:
- PAN, name, period of employment
- Total salary breakdown (Basic, HRA, perquisites, allowances)
- Section 10 exemptions (HRA, LTA, gratuity, etc.)
- Standard deduction, professional tax
- Section 80 deductions (80C, 80D, 80E, etc.)
- Total tax payable, TDS deducted, balance refund/payable
Common Form 24Q errors
- PAN mismatch — wrong PAN format or not validated against Income Tax DB. Use TIN-NSDL bulk PAN verification before filing.
- BSR code error — challan paid via wrong bank or BSR code mismatch with paid challan.
- Section 87A rebate calculation — Old vs New regime threshold (₹5L vs ₹7L) and rebate amount (₹12,500 vs ₹25,000) confusion.
- Surcharge not added — for income above ₹50L (10%) or ₹1Cr (15%) or ₹2Cr (25%) or ₹5Cr (37%, capped at 25% under New regime).
- Cess (4%) missing — health & education cess always 4% on income tax + surcharge.
How PeopleOS automates Form 24Q
Every TDS payment is recorded against its challan. At quarter-end, PeopleOS:
- Generates Annexure I from the quarter's challans
- For Q4, additionally generates Annexure II from the full-year payroll ledger
- Validates all PANs against the live IT department API
- Produces the FVU (File Validation Utility) compatible TXT file ready for upload to TIN-NSDL or ITD's e-filing portal
- Issues Form 16 to all employees within 15 days of Q4 filing
Penalties for late filing
- Section 234E: ₹200 per day of delay (capped at the TDS amount itself)
- Section 271H: ₹10,000 to ₹1,00,000 for failure to file or for filing inaccurate returns (added on top of 234E)
- Disallowance of expense: 30% of the salary expense disallowed under Section 40(a)(ia) if TDS not deposited / not reported
The compounding penalties make late Form 24Q filing one of the most expensive HR compliance failures. PeopleOS sets up automated reminders 14, 7, and 3 days before each quarterly deadline.