TDS refers to the process of Deduction of tax at source. With a view of reducing the cases of tax evasion, this act was however made in which the provision is to deduct the tax on certain income at the time when the income earner receives them. These are generally those incomes which can be ascertained and are computed at the time of their accrual to the receipt.
So, the persons who are responsible for making the payments of such incomes are thus required to deduct the income tax at the prescribed rates before the actual payment of income is made to the prescribed rates and also the fact of that before the actual payment of incomes is made to the income earner. Whatever the amount of income tax is deducted at source and it shall be deposited by the person concerned in the government treasury within the prescribed time limit.
The Form 24Q for TDS is deducted on the salary (under section 192) and it is required to be submitted on a quarterly basis by the deductor. Form 24Q has the details of the salary that is paid and is TDS deducted from the employees. TDS Form 24Q is thus filled by the tax deductor for the process TDS deduction on the salary under section 192 of the income tax act 1961 and it is thus submitted on quarterly basis by the deductor. It also has the details of the salary which is paid to the employee and then TDS is deducted from it. We can now say that TDS form 24Q is the Quarterly statement of the payment which is made to the employee and that TDS deducted from it by the deductor. There are thus different types of incomes that are subject to deduction of tax at source.
The Types of income which are considered as Salaries are:
|Interest on Securities.||Payments on Transfer of Certain Immovable Property Other Than Agricultural Land.|
|Dividends.||Payments Of Fees For Services Rendered That Are Professional Or Technical Services.|
|Interest Other Than the Interest on Securities.||Payment of Reimbursement on Acquisition of Certain Immovable Property.|
|Winning From Lottery or Crossword Puzzles.||Interest Payable to Non- Resident and Foreign Companies by an Infrastructure Debt Fund.|
|Winning From Horse Races.||Payment of Interest to a Non-Residents and Non-Indians Companies.|
|Payments to Resident Contractors.||Payments to an Off-shore Fund.|
|Payment of Insurance Commission.||Payment of Interest or Dividends on Foreign Currency Bonds or Shares of Indian Company.|
|Payments of Non-Resident Sportsman or Sports Association.||Payments of Interest or Dividends to Foreign Currency Bonds or Shares of Indian Company.|
|Payment of NSS.||Payments of Interest or Dividends to Foreign Institutional Investors.|
|Payment On Account Of Repurchase of Units by Mutual Fund or Unit Trust of India.||Payments In Respect Of Rent.|
During filling of Form 24Q, the first three Quarter salary details are not needed to be filled and only the deductor’s details and the challan details and deductee details have to be filled.
However, for the fourth quarter, all the salary details of the deductees, are required to be filled giving the details for the whole financial year.
Whereas for the employees who were involved for a part of the year with the organization the same work is to be done in the first three-quarter and in that no salary details are required to be filled.
However, in the fourth quarter, some authentic remuneration details for the certain part of the year during which the employee was employed by the business are to be provided.
For the employees whose taxable salary was under the limit for all the quarters are essentially required to be shown in Annexure II that is regarding the salary details that we can say the deductor have to give the salary details of the employees even if his employee’s taxable salary is below the threshold limit.
Whereas, if the employee’s salary has crossed the threshold limit then the salary details are to be provided in the column of salary details.
Hence we can say that the TDS form 24Q is a quarterly statement which is filed by the deductor regarding the salary deduction of the employees and the amount which is deducted from the income which is earned by the employees.
Also, the person who makes the payment is required to have all the record of the Tax deductor and the employee’s income is earned during the year in the first three-quarter it, and it also mainly focuses on the details of the tax deductor and the employees. It is the form which is used to file TDS return for the salary deduction.