TDS (Tax Deducted at Source) on salary is the tax that an employer deducts from an employee’s salary every month and deposits with the Income Tax Department.
The employer must then file a TDS return (Form 24Q) every quarter.
Why is TDS Return on Salary important?
- Legal compliance
- Filing TDS returns is mandatory under the Income Tax Act.
- Non-filing or late filing leads to penalties and interest.
- Employee tax credit
- Employees get credit of TDS in their Form 26AS / AIS.
- Without filing TDS return, employees cannot claim TDS while filing their Income Tax Return (ITR).
- Avoid penalties
- Late filing fee: ₹200 per day (max up to TDS amount).
- Penalty: ₹10,000 to ₹1,00,000 for incorrect or non-filing.
- Proof of tax deduction
- Ensures Form 16 is generated correctly for employees.
- Smooth assessments
- Proper filing avoids notices from the Income Tax Department.
Which TDS return is filed for salary?
👉 Form 24Q (Quarterly TDS return for salary)
| Quarter | Period | Due Date |
|---|---|---|
| Q1 | Apr–Jun | 31 July |
| Q2 | Jul–Sep | 31 October |
| Q3 | Oct–Dec | 31 January |
| Q4 | Jan–Mar | 31 May |
Documents required for TDS Return (Salary)
Employer details
- TAN (Tax Deduction & Collection Account Number)
- PAN of employer
- Company/Employer name & address
- Authorized signatory details
Employee details
- PAN of all employees
- Salary structure
- Investment declarations (80C, 80D, HRA, etc.)
- Previous employer salary details (if any)
Salary & tax details
- Monthly salary breakup
- TDS deducted each month
- Challan details (BSR code, challan number, date, amount)
- Proof of tax deposited
Other documents
- Form 12BB (investment proof)
- Form 16 details (for Q4)
- Bank payment proofs
- Digital signature (in some cases)
