Dear Experts,
I would be grateful for your guidance on a specific query related to the 24Q1 Salary TDS Return for FY 2025-26, particularly in relation to employees whose annual salary exceeds ₹4 Lakhs but is below ₹12 Lakhs, under the new tax regime.
As per the current tax guidelines, TDS is generally deducted for employees earning above ₹12 Lakhs annually. However, for employees earning between ₹4 Lakhs and ₹12 Lakhs, no TDS is deducted as their income is below the threshold for deduction.
Further, according to the TDS Return schema, there should be at least one valid payment challan reported. For example:
Mr. A: Salary exceeds ₹12 Lakhs annually (monthly salary of ₹1 Lakh). TDS of ₹10,000 is deducted per month (as per applicable slab).
Mr. B: Salary is more than ₹5 Lakhs but less than ₹12 Lakhs annually (₹6 Lakhs / ₹50,000 per month), and no TDS is deducted, as no tax is applicable.
My question is:
1. How should we report employees like Mr. B, whose salary exceeds ₹4 Lakhs but is below ₹12 Lakhs, in the 24Q1 Salary TDS Return, even if no TDS is deducted?
Would they still need to be reported, considering the schema requires at least one valid payment challan? If so, what is the correct way to handle these cases?
I would greatly appreciate your clarification on this matter.
Thank you so much for your time and expertise!
Warm regards,
CAclubindia
