What is Form 24Q?
Form 24Q is a tax form used in India to report TDS (Tax Deducted at Source) on salary payments. It is required to be filed to the Indian government by employers or persons responsible for deducting TDS on salary payments.
The form 24Q consists of four quarters, with each quarter representing three months ending in June (for Q1), September (for Q2), December (for Q3), and March (for Q4). Employers are required to file the form every quarter, with the deadline for filing being the 15th day of the month following the end of the quarter.
Note: The deadline for filing Form 24Q for the fourth quarter (Jan - March) is on May 15th and not April 15th, as mandated by the government.
Form 24Q requires detailed information about the salary payments made to each employee, including the amount of salary, TDS deducted, and the employee’s PAN (Permanent Account Number). The form also requires the employer’s details, such as the TAN (Tax Deduction and Collection Account Number) and the address of the business.
Form 24Q in Zoho Payroll
In Zoho Payroll, the Form 24Q module can generate the text file based on each employee’s salary and TDS information. Once you generate the text file, you’ll have to attach the text file and generate the .fvu file using the FVU tool provided by the Tax Information Network. Once you generate the .fvu using the text file, you can submit it to the Indian government through an online portal.
Generating the text file based on employees’ information in Zoho Payroll ensures that the employers comply with the tax laws and file the form correctly.
Insight: Text files in Form 24Q refer to the quarterly TDS (Tax Deducted at Source) statement for salaried employees in India. These text files contain the details of the TDS deductions made by the employer on behalf of the employee and the amount deposited to the government. The text file format is standardized and is used for the submission of TDS returns to the Income Tax Department. The information in these text files includes the employee’s name, PAN (Permanent Account Number), TDS amount, and other relevant details.
Zoho Payroll also keeps a copy of the text file for its records and any future reference. Let’s see how you can generate the text file in Zoho Payroll.
Enable Form 24Q
Pre-Requisite: You need to enable the feature first to view the TDS Liabilities, Challans and Form 24Q modules.
- Click View Details on the left sidebar and click Enable.
Generate & Download Text Files
Ensure to complete the below prerequisites to generate and download text files.
Here are the prerequisites for generating text files in Zoho Payroll:
- Ensure that the employees’ PAN employer’s TAN are correct.
- Make sure that the pay run has been processed for the quarter you want to generate the text file.
- Record the challan and associate the payment amount with the TDS liabilities of employees.
Here’s how you can generate the text file in Zoho Payroll:
- Go to Taxes and Forms on the left sidebar and click Form 24Q.
- Select the quarter for which you’ve processed the pay run.
- Click View Details.
You can view the Deposit Period, Due Date for filing Form 24Q, challan number and the TDS Liabilities associated with it.
- Click Generate Text File in the top right corner.
Note: You will not be able to generate text file if you’re still yet to process pending pay run for the filing period.
- Verify the Employer and Responsible Person details. If you want to change the details, click the Edit icon.
- Click Generate.
Once you generate the text file, you can download it to use for FVU generation and proceed with filing Form 24Q. To download the text file, click Download.