REGARDING TDS DEDUCTION ON SALARY
This query is : Resolved
Quick Summary
05 May 2026
“If an employee’s salary exceeds the basic exemption limit but results in zero tax liability after considering deductions and rebates, is TDS deduction required? Also, should such salary be reported in the employer’s TDS return (Form 24Q)?
For Example : RS.480000 Annual Salary then it should be reported in TDS return filed by employer?
For Example : RS.480000 Annual Salary then it should be reported in TDS return filed by employer?
05 May 2026
* TDS deduction is NOT required if final tax liability is NIL
* However, salary must still be reported in Form 24Q by the employer
* However, salary must still be reported in Form 24Q by the employer
05 May 2026
what if any employee salary not liable to TDS and we have not paid any challan under section 192 ?
how such salary reported in form 24Q TDS return filed by employer?
how such salary reported in form 24Q TDS return filed by employer?
05 May 2026
TDS Deduction: Not required if the final tax liability is NIL.
Reporting: Mandatory to report such salary details in Form 24Q if the gross salary exceeds the basic exemption limit.
Example Case: A salary of ₹4.8 Lakhs must be reported in the employer's TDS return.
Reporting Mechanism: In cases where no tax was deducted and no challan was paid under Section 192, these details are typically reported in Annexure II (the salary detail statement) of the Form 24Q for the fourth quarter (Q4).
Scope of Reporting: This ensures that the Income Tax Department has a record of the total salary paid and the reason (deductions/rebates) why no tax was withheld.
Reporting: Mandatory to report such salary details in Form 24Q if the gross salary exceeds the basic exemption limit.
Example Case: A salary of ₹4.8 Lakhs must be reported in the employer's TDS return.
Reporting Mechanism: In cases where no tax was deducted and no challan was paid under Section 192, these details are typically reported in Annexure II (the salary detail statement) of the Form 24Q for the fourth quarter (Q4).
Scope of Reporting: This ensures that the Income Tax Department has a record of the total salary paid and the reason (deductions/rebates) why no tax was withheld.
05 May 2026
If we not file ANNEXURE II for reporting of tds on salary exceeds basic exemption limit with zero tax liability after rebate
then Any penalty interest Arise on this reporting?
then Any penalty interest Arise on this reporting?
07 May 2026
Technically, no monetary penalty or interest will arise under Section 234E if your total TDS liability is zero, but you still face risks for non-compliance. Risk of ₹10,000 to ₹1 Lakh. The Assessing Officer can impose a penalty for "failure to furnish" or "incorrect reporting," even if no tax is due & without Annexure II, you cannot generate a valid Form 16 (Part B) for the employee.
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