Salary TDS return 24Q & due date of return & challan

Summary: TDS on salary is governed by Section 192 of the Income Tax Act, applicable when salary is taxable under the ‘Salary’ head for both resident and non-resident individuals, overriding Section 195 for non-residents. Deductors, who deduct TDS, are required to file Form 24Q quarterly, detailing the deductees (whose TDS was withheld). TDS on salary is deducted according to income tax slab rates, unlike other sections with fixed rates. Surcharge and cess are also considered: surcharge if total income exceeds the limit, and cess irrespective of income. Section 192 applies to employer-employee and HUF-Karta relationships, but not to proprietor-sole proprietor, partner-partnership firm, or partner-LLP scenarios, as a partner’s salary falls under ‘PGBP’. Quarterly due dates for Form 24Q range from July 31st (April-June) to May 31st (January-March). Monthly challan payments are due by the 7th of the following month, except for March, which is April 30th. Deductors issue Form 16 annually to deductees whose TDS was withheld on salary, detailing yearly salary, deductions, and tax liability. Late TDS deduction incurs 1% interest per month from the deductible date, while late payment (after deduction) incurs 1.5% interest per month from the deduction date. Interest on late TDS is disallowed as an expense under the Income Tax Act, and no deferred tax is created. Losses from house property and other sources can be set off against salary income, but PGBP and capital gain losses cannot.

TDS return 24Q & due date of return & challan:-

1.TDs deduction on salary:-

• TDs on salary is deducted u/s 192 of the Income Tax Act.
• This section applies only when salary is chargeable under the “Salary” head.

In some cases, salary is chargeable under “PGBP” head instead of “Salary” head.

2. Resident or Non-resident individual:-

TDs will be deducted u/s 192 in both the cases when salary paid to resident individual & non-resident individual.

Salary paid to non-resident individual is also covered under this section instead of Sec 195.

3. TDs return:-

In case of TDs deducted on salary, deductor is required to file the Form-24Q, which contains the details of deductee whose TDs has been deducted.

4. Deductor vs Deductee:-

5. TDs rate on salary:-

TDS on salary is deducted as per the applicable income tax slab rates. There is no fixed or special TDS rate as applicable under other sections.

6. Surcharge & cess:-

a. Surcharge is also considered at the time of deducting of TDs on salary if total income exceeds the limit for applicability of surcharge. However, under other sections, only TDs is deducted.

b. Cess shall be considered at the time of deducting of TDs on salary irrespective of the income. However, under other sections, only TDs is deducted.

7. Types of deductors:-

Partner salary is chargeable under PGBP head instead of salary head. Hence, Sec. 192 is not applicable.

8. TDs return due date:-

• The return will be filed on quarterly basis.
• The due date is the last day of the month following the end of the quarter except for 4^th

9. Challan due date:-

• Challan should be deposited on monthly basis.
• The due date is the 7^th of the following month in which TDs was deducted except for the month of March.

10. Form-16:-

• It is issued by deductor to deductee on yearly basis.
• It contains two parts: Part-A & Part-B.
• Form-16 is issued only when TDs has been deducted on salary.
• Part-B contains the yearly salary along with the deduction like HRA, LIC, Donation, Medical insurance etc. & tax liability on total income after all deductions.

11. Interest for late deduction of TDs:-

• If TDs is not deducted on time then interest liability will be arise @1% per month or part thereof.
• Period for interest calculation:

From the date on which TDs was deductible till actual date of deduction.

• Suppose, TDs of April month salary is deducted on 9^th June, then interest will be levied from April to June.
• Interest will be calculated on TDs amount not on the salary amount.
• For interest calculation, part of month is considered as full month.

Interest calculation 1,00,000 * 1% * 3 months = 3,000

12. Interest for late payment of TDs:-

• If TDs is deducted but not deposited on time then interest liability will be arise @1.5% per month or part thereof.
• Period for interest calculation:

From the date on which TDs was deducted till actual date of payment.

• Suppose, TDs of April month salary is deducted on 30^th April, but deposited on 10^th June then interest will be levied from April to June.
• Interest will be calculated on TDs amount not on the salary amount.
• For interest calculation, part of month is considered as full month.

Interest calculation 1,00,000 * 1.5% * 3 months = 4,500

13. Allowance or disallowance of interest:-

Interest is disallowed under IT Act. Assessee cannot claim such interest as an expense.

14. Deferred tax on interest:-

It is a type of permanent difference. Hence, no deferred tax shall be created on interest.

15. Set off of losses:-

Business losses & capital gain losses can-not be set off from salary income.

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