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An employer paying a salary is required to deduct tax at source under section 192 of Income Tax Act, 1961, on the salary payable and issue Form 16 to the employees at the end of each financial year. We can assist you in managing your TDS compliance through our platform efficiently. After subscribing to our services, our team will help you to:
Form 16 is a vital document for a salary taking individual, especially if the employer has deducted tax on his/her income. Form 16 is basically a certificate provided by the Employer to the employee displaying the amount of tax deducted from the salary income and deposited with the Government. When an employee files his income tax return, Form 16 helps him to see how much tax has already been paid and to avail the credit for the same while filing the Income-tax return.
The Employer has to file the details of salary paid, TDS deducted on such payment to its employees in Form 24Q. The compliance of form 24Q is to be done quarterly.
Further, 24Q consists of 2 annexures – Annexure I and Annexure-II.
Annexure I has to be submitted by the Employer for all 4 quarters of an FY.
Annexure II, unlike Annexure I, is not required to be submitted for the first three quarters but only for the last quarter (i.e. 4th quarter).
|Q1 – April to June||31st July|
|Q2 – July to September||31st October|
|Q3 – October to December||31st January|
|Q4 – January to March||31st May|
Section 192 in the income tax highlights the provisions regarding deduction of tax on salary income at source. As per the provisions, the Employer at the time of paying salary to his employee is required to deduct tax at source TDS.
TDS certificate in Form 16 is issued when TDS has been deducted. In case no TDS has been deducted by the Employer, Form 16 may not be issued.
TDS on salary is liable for deduction at the time of payment of salary. Similarly, in the case of advance salary, the TDS is to be deducted at the time of payment of advance salary and not when the salary is due.
Suppose TDS deducted is not deposited by the Employer. In that case, the Employer is liable to pay interest for late deposit @ 1.5% per month from the date on which tax was deducted till the date on which TDS was deposited to the credit of the Government.