Is Form 24Q required even if employee TDS is zero?

Yes. Employees must be reported in Form 24Q even with zero TDS. Most TAN holders must file quarterly returns even for nil TDS quarters.

Form 24Q – Quarterly TDS Return on Salary | Filing & Compliance | NDS Avla

Form 24Q – Quarterly TDS Return on Salary – Section 192 Compliance for Employers

Q: How does an employer calculate TDS on salary under Section 192?

Employer estimates annual taxable income, computes annual tax liability, and divides by remaining months for monthly TDS. Final computation happens in Q4 with actual investment proofs. Any excess or deficit is adjusted in March salary.

Q: What is Form 16 and when must it be issued?

Form 16 is the salary TDS certificate with Part A (TRACES download) and Part B (employer-prepared salary details). Must be issued to employees by June 15 following the financial year.

Complete Form 24Q Preparation, Annual Salary TDS Computation & Form 16 Issuance for Employers

Form 24Q is the quarterly TDS return filed by employers for reporting TDS deducted on salaries paid to employees under Section 192 of the Income Tax Act. Unlike other TDS returns where the TDS rate is fixed by statute, salary TDS under Section 192 requires the employer to estimate the employee's annual tax liability for the entire financial year, divide it by the number of months remaining, and deduct that amount from each month's salary. This makes Form 24Q preparation significantly more complex than other TDS returns — especially in Q4 (January–March), which requires full annual tax computation for each employee.

The Q4 Form 24Q is the most critical quarterly filing — it must include the complete annual salary details, all exemptions and deductions claimed by the employee, investment proof verification results, and the final annual tax computation. Based on Q4 Form 24Q, employers generate Form 16 (the salary TDS certificate) which employees use for their own income tax return filing. Our services cover complete employer TDS compliance: monthly payroll TDS computation, quarterly Form 24Q filing, and annual Form 16 generation. This is closely linked with TDS return filing services and TDS advisory.

Form 24Q — Quarter-wise Filing Details

Quarter	Period	Due Date	Key Requirement
Q1	April – June	31st July	Provisional salary TDS based on projected annual income
Q2	July – September	31st October	Revised TDS based on actual salary paid and investment declarations
Q3	October – December	31st January	Adjusted TDS after investment proof collection starts
Q4	January – March	31st May	Final annual TDS computation with verified investment proofs; Form 16 basis

Our Form 24Q Services

Monthly Salary TDS Computation

Month-by-month computation of each employee's salary TDS obligation — factoring in tax regime choice (old vs. new), exemptions claimed (HRA, LTA, standard deduction), and deductions under Chapter VI-A.

Quarterly Form 24Q Filing

Preparation and filing of Form 24Q for all four quarters — with complete employee details, salary breakup, TDS amounts, challan mapping, and FVU validation before submission.

Investment Proof Verification Advisory

Advisory on acceptable investment proofs under Section 80C, 80D, HRA, LTA, etc. — and their incorporation into Q4 Form 24Q to finalize each employee's annual tax liability.

Form 16 Generation

Annual Form 16 (Part A from TRACES + Part B salary certificate) generation for all employees — downloadable from TRACES after Q4 Form 24Q filing, issued by employer to employees by 15th June.

New vs. Old Tax Regime TDS

Advisory and computation support for employees who choose the new tax regime under Section 115BAC — ensuring correct TDS based on regime choice and managing mid-year regime switches.

Correction Returns & Defaults

Correction of Form 24Q filing errors — PAN corrections, salary amount corrections, and correction of challan mismatches — and response to Section 200A/201 defaults from salary TDS returns.

Frequently Asked Questions

How does an employer calculate TDS on salary under Section 192?

The employer must estimate the employee's total taxable income for the full financial year at the start of the year, compute the annual tax liability on that estimated income (including applicable surcharge, cess, and rebates), and divide the annual tax by 12 (or the number of months remaining) to arrive at the monthly TDS amount. This estimation is revisited each month as actual salary is paid, and the TDS is recalibrated. In Q4, actual investment proofs are verified and final tax is computed, with any deficit or excess adjusted in March salary TDS.

What is Form 16 and when must it be issued to employees?

Form 16 is the TDS certificate issued by an employer to an employee under Section 203 of the Income Tax Act. It has two parts: Part A (downloaded from TRACES) showing TDS deducted and deposited by the employer, and Part B (prepared by employer) showing the detailed salary breakup, exemptions, deductions, and net taxable income. Form 16 must be issued to all employees whose salary TDS was deducted — the deadline for issuing Form 16 is June 15 following the end of the financial year (i.e., June 15, 2025 for FY 2024-25).

Can an employee choose between old and new tax regime after Form 24Q has been filed?

Yes, but with restrictions. For salaried individuals, the tax regime choice can be changed at the time of filing the annual income tax return (ITR). During the financial year, the employee can inform the employer of their regime choice, and the employer will compute TDS accordingly. However, if an employee changes their declared regime after the employer has already deducted TDS based on the previous choice, the resulting under-deduction or over-deduction will be adjusted in subsequent months. At the time of filing their own ITR, the employee can still opt for a different regime than what the employer used — the final tax liability is settled through the ITR process.

Is Form 24Q required if TDS on salary is zero due to taxable income being below the exemption limit?

Yes, Form 24Q must be filed even for employees whose salary does not exceed the basic exemption limit and no TDS is deducted. The employee must still be reported as a deductee in Form 24Q with zero TDS. However, an employer is required to file Form 24Q only if they are registered as a deductor (have a TAN) and have salary disbursements. Employers who pay salaries below the minimum threshold to all employees need to evaluate whether their TAN requires them to file nil TDS returns — most TAN holders are required to file quarterly returns even if the TDS amount is zero.

Need Complete Salary TDS Compliance? Form 24Q to Form 16 — We Handle It All.

Our payroll TDS team manages monthly TDS computation, quarterly Form 24Q filing, investment proof processing, and Form 16 generation — ensuring complete employer TDS compliance year-round.

F.A.Q.

What is annual compliance for a group gratuity trust?

It includes all yearly requirements such as filings, actuarial valuation, audits, and maintaining proper records.

Is annual compliance mandatory for gratuity trusts?

Yes, regular compliance is required to maintain approval and tax benefits.

What is the role of actuarial valuation in compliance?

It helps determine the exact gratuity liability and required funding for the trust.

Are annual returns required to be filed?

Yes, trusts must file necessary returns and maintain financial records as per regulations.

What happens if compliance is not maintained?

Non-compliance can lead to penalties, loss of tax benefits, or cancellation of approval.

Who is responsible for compliance of the trust?

Trustees and the employer are responsible for ensuring proper compliance.