TDS Return Filing (24Q / Form 16): CA-Assisted Process for Employers - Pune, Mumbai, Delhi, Gurugram

Every employer who pays salaries and deducts TDS must file Form 24Q every quarter and issue Form 16 to every employee annually. This is not optional-it is a legal obligation under Section 200(3) of the Income Tax Act. Missing a deadline by even one day triggers automatic penalties. Getting it wrong creates mismatches in employees’ Form 26AS/AIS that follow them into their personal ITR filing and can trigger notices.

This guide covers the complete Form 24Q filing process, Form 16 generation, the 2026 correction window changes, and how Patron Accounting’s CA-assisted process eliminates the errors and penalties that plague DIY and low-cost filing. For the broader payroll compliance framework, see our payroll processing guide . For company registration clients, TDS compliance begins from the month you make your first salary payment.

What Form 24Q Contains

Form 24Q has two key components:

Annexure I (Filed Every Quarter: Q1, Q2, Q3, Q4)

• Deductor details: TAN, PAN, name, address, responsible person
• Deductee (employee) details: PAN, name, TDS amount deducted
• Challan details: BSR code, challan serial number, date of deposit, TDS amount per challan
• Mapping of employee TDS to specific challans (challan-deductee matching)

Annexure II (Filed ONLY in Q4)

• Complete salary breakup for each employee for the full financial year
• Deductions claimed: Section 80C, 80D, 80CCD, HRA, LTA, standard deduction
• Tax regime chosen (old or new) by each employee
• Total tax computed vs total TDS deducted vs shortfall/excess
• This Annexure II data becomes Part B of Form 16

Critical point: Annexure II errors in Q4 directly flow into Form 16. An error in Annexure II means an incorrect Form 16-which means the employee’s ITR will have wrong TDS data-which triggers mismatches in Form 26AS/AIS-which triggers IT notices. The chain reaction starts at Annexure II.

The Filing Process: Step-by-Step

Quarterly Deadlines and Penalties

Monthly TDS deposit deadline: 7th of the following month. Late deposit attracts 1.5% interest per month (part of month = full month). This is separate from the quarterly filing penalty. You can deposit TDS on time but still face penalties if the quarterly return is filed late.

The 2026 Correction Window: What’s Changed

A major change effective 1 April 2026: TDS correction statements are now subject to a 2-year limitation period. Previously, corrections for even decade-old returns were allowed. Now:

• Corrections for FY 2023-24 and earlier: Time-barred from 1 April 2026. TRACES will reject them.
• Corrections for FY 2024-25 onwards: Must be filed within 2 years from the end of the FY.
• Multiple corrections within the window: Still allowed, but each must include justification remarks.
• Digital enforcement: All corrections via TRACES with mandatory e-verification (DSC or EVC). PAN-Aadhaar seeding integration flags errors upfront.

Action required: If you have pending corrections for FY 2019-20 through FY 2022-23, file them before 31 March 2026. After that date, TRACES will not accept them. CBDT estimates approximately 2 million pending corrections are affected. For businesses managing income tax return filing, unresolved TDS mismatches from older years become permanent after this deadline.

5 Common Form 24Q Errors and How to Avoid Them

Error 1: PAN mismatch. Employee PAN entered incorrectly in the return. Result: TDS credit doesn’t appear in the employee’s Form 26AS. The employee gets an IT notice for “unpaid tax.” Solution: verify every PAN against the IT portal before filing. Cross-check with Form 12BB/124 submitted by employees.

Error 2: Challan-deductee mismatch. TDS amount per challan doesn’t match the sum of employee TDS mapped to it. This is the #1 FVU validation failure. Solution: reconcile challans monthly-don’t wait for the quarterly filing. Every challan amount must exactly match the total TDS for the period.

Error 3: Wrong section code. Using Section 194J instead of Section 192 for salary TDS (or vice versa). This creates mismatches in the employee’s 26AS where the TDS appears under a different section than what the employee reports in their ITR. Solution: salary TDS is always Section 192.

Error 4: Annexure II errors in Q4. Incorrect salary breakup, wrong deductions, or failure to reflect the employee’s chosen tax regime. These errors flow directly into Form 16 Part B. Solution: reconcile full-year payroll data against employee declarations before preparing Annexure II. For businesses using professional accounting services, this reconciliation is a critical year-end engagement.

Error 5: Not filing NIL returns. If you have a TAN but deducted no TDS in a quarter, you must still file a NIL return. Not filing = same penalties as late filing. TRACES generates notices for TAN holders who don’t file.

Patron Accounting’s CA-Assisted TDS Filing Process

Our TDS return filing service covers the complete cycle from monthly TDS tracking to annual Form 16 issuance. Here’s how our process works across our offices in Pune, Mumbai, Delhi, and Gurugram:

For businesses managing GST registration and TDS alongside, our monthly compliance calendar integrates both GST filing (20th GSTR-3B) and TDS deposit (7th) to ensure no deadline is missed.

Old vs New Tax Regime: The TDS Calculation Challenge

Every employee’s TDS depends on their chosen tax regime. The employer must calculate TDS differently for each:

The employer’s challenge: You must collect regime choice from every employee at the start of the year (via Form 124, replacing Form 12BB from 1 April 2026). If an employee doesn’t declare, the default is the new regime. Model both regimes for each employee and provide guidance-but the choice is the employee’s. For businesses using tax audit services , the auditor verifies TDS computation against the declared regime in Form 3CD.

Key Takeaways

Form 24Q is the quarterly TDS return for salary payments, filed by every employer with a TAN. It is the single most critical payroll compliance document because it feeds into Form 16 (employee’s TDS certificate), Form 26AS/AIS (employee’s tax credit record), and the employee’s personal ITR. An error in Form 24Q cascades into every downstream document.

The filing process involves monthly TDS deposit (by 7th), quarterly return preparation using RPU/FVU (by the quarterly deadline), and annual Form 16 generation from TRACES (by 15 June). The 2026 correction window change (2-year limitation) means errors in older returns must be corrected before they become time-barred. Pending corrections for FY 2019-20 through FY 2022-23 must be filed before 31 March 2026.

CA-assisted filing eliminates the 5 most common errors (PAN mismatch, challan mismatch, wrong section code, Annexure II errors, missing NIL returns) through monthly reconciliation, pre-filing validation, and post-filing 26AS/AIS verification. The cost of professional filing is a fraction of the penalties that accumulate from even a few days of delay (Rs 200/day + 1.5%/month interest + Section 271H penalties).

Get Error-Free TDS Filing Every Quarter

Form 24Q errors cascade into Form 16, Form 26AS, and employee ITR mismatches. Professional filing eliminates errors at source through monthly reconciliation, pre-filing validation, and post-filing verification. The 2026 correction window change makes getting it right the first time more important than ever.

Explore our professional accounting services for CA-assisted TDS return filing, Form 16 generation, correction management, and payroll compliance across Pune, Mumbai, Delhi, and Gurugram.

For queries, reach out at +91 945 945 6700 or WhatsApp us directly.