New Changes to Form 24Q TDS Filing for Salaried Workers – January 2025

The Central Board of Direct Taxes (CBDT) has introduced significant updates to Form 24Q, effective January 2025, to streamline TDS return filing. These changes aim to provide salaried employees with greater tax transparency and compliance ease.

Form 24Q: What Is It?

Form 24Q is a quarterly statement filed by employers to report TDS deductions from employees' salaries. It contains essential details such as:

• Salaries paid to employees for the quarter.
• TDS deducted and deposited with the government.
• Tax calculations as per income tax laws.

Key Changes in Form 24Q Effective January 2025

The updated Form 24Q focuses on precision and transparency. Key changes include:

1. Detailed Salary Breakdown

Employers must now report detailed salary components such as basic pay, allowances, exemptions, and deductions. This ensures accurate tax calculations and simplifies employee verification.

2. Pre-Filled Tax Computation Details

The form now includes pre-filled tax details, including gross taxable income, deductions, and taxable income after deductions. This reduces errors and ensures consistency.

3. Reporting Perquisites and Exemptions

Employers are required to disclose exempt allowances like HRA and LTA and non-taxable perquisites like EPF contributions separately.

4. Compliance with Tax Regimes

Employers must differentiate between employees opting for the old tax regime and the new tax regime, ensuring accurate reporting.

5. Improved Validation Process

The updated form includes built-in validation mechanisms to highlight discrepancies in salary, TDS deductions, or PAN details.

Benefits for Salaried Employees

• Accurate tax credits in Form 26AS.
• Simplified tax filing process with pre-filled details.
• Transparency in salary components and TDS deductions.
• Quick refunds due to accurate TDS reporting.

Employers' Responsibilities

Employers need to:

• Ensure accurate TDS deductions based on the chosen tax regime.
• Update payroll systems to align with the new reporting requirements.
• File the updated Form 24Q on time.
• Inform employees about the changes.

Filing Form 24Q: Steps to Follow

1. Gather necessary data like salary details and investment proofs.
2. Use the latest TDS filing utility provided by the Income Tax Department.
3. Verify salary breakdowns, tax computations, and PAN details.
4. Submit the form via the Income Tax e-Filing portal.
5. Issue Form 16 to employees based on the revised Form 24Q.

Conclusion

The updated Form 24Q, effective January 2025, marks a significant step in improving tax compliance and providing relief to salaried employees. By enhancing transparency and accuracy, the revised form ensures a smoother tax filing experience for both employers and employees.

Leave a reply