Manager - Finance & Accounts
58399 Points
Joined June 2010
Thanks for sharing the details, Eswar. Here's a quick clarification on the TDS column in Annexure III of Form 24Q (Q4) related to Pension payments:
What you observed:
-
In Annexure II (Salary) of 24Q, you have these columns:
-
Tax on total income
-
TDS deducted
-
Net tax payable
-
In Annexure III (Pension), you see:
Why is this happening?
Annexure III in Form 24Q (Quarterly TDS statement on salary) relates specifically to pension payments made to employees. The format for Annexure III as per the Income Tax department does not include a separate column for TDS deducted because:
-
Pension TDS is generally deducted at a prescribed rate on the pension amount, and the tax deducted is reflected in the overall TDS summary of the form.
-
Annexure III shows calculation of tax on pension income and net tax payable, but the actual TDS deducted on pension may be captured elsewhere, such as in the main summary or in Annexure I (Deductee-wise details).
-
The software version (like RPU 5.1) is designed to follow the Income Tax Department's prescribed format for Annexure III, which currently does not mandate showing a TDS deducted column separately in that Annexure for pension.
What to do?
-
Verify TDS deducted on pension in Annexure I — the detailed deductee-wise TDS statement includes the exact TDS amounts deducted per deductee.
-
Cross-check the summary of TDS in the main form to ensure pension TDS is properly reflected.
-
Since Annexure III is primarily to show tax computation on pension, the absence of a TDS deducted column there is as per the prescribed format.