Form 24Q is used to prepare electronic TDS (Tax Deducted at Source) returns for TDS (Tax Deducted at Source) deducted on salary under Section 192. The employer is required to file Form 24Q on a quarterly basis. This form contains information about the salary paid to employees as well as the TDS deducted from their pay. TDS is deducted according to each employee’s income tax slab. The employer must take into account all of the employee’s deductions and investments. If an employer fails to deduct TDS or deducts TDS at a reduced rate, they must explain why.
Did you know: The latest version of the FVU has the addition of a new field in Annexure-II of Form 24Q- Q4. The new field added is - Whether opting for taxation under section 115 BAC (Yes/No).
The Key Features of Form 24Q
Form 24Q includes two annexures namely Annexure I and Annexure-II. You have to make a submission of Annexure I during all four quarters of a year. You have to make a submission of Annexure-II only during the last quarter of the year. There are various details that have to be shared in both these Annexures.
Details to be filled in Annexure-I are as follows:
- Details of the said Deductee – This includes the reference number of employees, their names as well as their PAN card details
- The serial number of the challan
- Basic Statistical Returns (BSR) Code of the said branch
- The date of deposit
- The total amount of the TDS
- The interest which will be allocated between the Deductees
Details to be filled in Annexure-II are as follows:
- Complete breakup of the salary
- Deductions, if any, which will be claimed by employees
- Income from other sources, if any
- House property
- Tax liability of the said individuals
Details regarding the Due Dates of Filing Form 24Q:
The due dates of filing form 24Q are given in the table below:
April 1 to June 30
July 1 to September 30
October 1 to December 31
January 1 to March 31
Submission of Form 24Q:
You can submit Form 24Q either online or in person. However, filing of the form is compulsory for the category of persons mentioned below:
- A commercial Company
- Persons whose Tax Audit under Section 44AB in the previous year is required
- Government Deductor
- In the case of a Deductor where the number of Deductees is more than 20 in the statement of a particular quarter
Various Documents which are required to upload in Form 24Q:
Given below is the list of the various documents which are required to upload with form 24Q:
- A valid and registered Tax Deduction and Collection Account Number (TAN)
- For preparing the TDS statement Return preparation utility ( RPU ) should be used and for the validation File validation utility ( FVU ) should be used.
- Registered DSC to upload returns
- Demat account or principal contact's bank account or PAN card
- Aadhar card
The Impact of a Delay in Filing of Form 24Q
There are two cases in which interest is levied. The details of these are as follows:
- If TDS is not deducted, then the interest of 1 percent per month is levied from the due date of deduction to the actual date of deduction.
- If TDS is deducted but not deposited then the interest of 1.5 percent per month is levied from the date of actual deduction to the date of actual deposit.
The aid penalty is also charged in two cases. Details of the same are as follows:
1. A delayed filing of Form 24Q involves a penalty under Section 234E - Rs. 200 per day until the filing of return up to a maximum of an amount equal to TDS deducted
2. Non-filing of Form 24Q involves a penalty under Section 271H
3. A minimum fine of Rs. 10,000 can be imposed. This can extend to a maximum of Rs. 1,00,000 depending on the extent of delay.
How to create an FVU file for TDS return?
Given below is an image that clearly indicates how you can create an FVU file for TDS returns:
The following steps detail how you can create an FVU file:
Step 1 - Registration
The initial step is to register with Traces and file an E-filing. To begin, register your TAN number in the traces section. However, if you haven't filed a TDS return (other than NIL Return), the registration will not be processed. Because you'll need a token number and your prior return's challan details to register on TRACES. The TAN number must be registered on the E- Filing site.
Step 2 - Utility downloading
The second step is to download the utility from TIN-NSDL. There are two utilities:
- The RPU (Return Preparation Utility) is used to prepare TDS returns.
- The second is FVU (File Validation Utility), which allows us to verify that the data in the return preparation utility is correct by comparing the information to the CSI ( challan status inquiry file ) File.
Step 3 - Downloading challan status inquiry file (CSI file)
In order to create a file validation utility ( FVU ) first, we have to download the challan status inquiry file ( CSI ) which is also known as the CIN file.
The process of validating the above is clearly given in the image below:
How to open a CSI file from NSDL?
CSI file can be downloaded in the following way:
- Go to www.tin.nsdl.com
- Press TAN BASED VIEW.
- Complete the details and then download it.
Step 4 - Open RPU
After downloading both the utilities, open RPU and select the appropriate form number and select Regular, and then Click to Continue.
Step 5 - Filling of details
Now fill in all the details.
Step 6 - Linking with CSI file
After filling in all the details save the file and click on the create file. A dialog box will pop up In the first box challan input file name with path select CSI file downloaded previously.
Step 7 - Storing the files
Select the folder where all the files will be saved after the report is generated in the following box (Error and statistics report file path). Then select Validate. A small number of files will be created and saved in the chosen folder.
Step 8 - Validating the files
When you open FUV, a Dialog Box will appear. Select the file with the ".txt" extension that was created in the previous stage in the first box (TDS input file name with the path). Select CSI File in the second box, and then choose a folder where the files will be saved after they have been generated in the third box.
Then select Validate. Only a few files will be created. If you make a mistake while generating a return, the produced file will contain an error file. There will be a Supporting document named 27A in the files generated. Recheck the details to discover it. Convert the .fuv extension file to a ZIP file.
Also read: Income Tax in India: Basics, Slabs and E-filing Process
Step 9 - Uploading the file on the E-filing portal
Using the TAN number that has been assigned to you. Log in to the E-Filing site for the return you're working on. TDS and upload may be found by clicking on them. Fill in the blanks, then upload the ZIP and Signature files before submitting the form. Using the TAN number that has been assigned to you. Log in to the E-Filing site for the return you're working on. TDS and upload may be found by clicking on them. Fill in the blanks, then upload the ZIP and Signature files before submitting the form.
Step 10 - Tracking the status
After 2 to 3 days, the returns which have been filed will be visible on TDS Reconciliation Analysis and Correction Enabling System (TRACES).
We hope this article has given you all the required details regarding Form 24Q including its components, due dates, penalties as well as the interest charge for a delay in filing the same. This article is also very informative and clearly outlines the various steps for creating an FVU file. Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.