Form 24Q Quarterly Payroll TDS Filing: Correction Statements & Penalties (2026)

Employers in India deducting TDS on Salaries (Section 192) from employee monthly payslips must file quarterly electronic TDS returns using Form 24Q on the TRACES portal.

Failing to file Form 24Q accurately or missing statutory quarterly deadlines triggers daily late fees under Section 234E, delays Form 16 Part A generation for employees, and causes PAN mismatch defaults.

In this comprehensive 10-minute compliance guide, we explain Form 24Q structure (Annexure I vs Annexure II), statutory quarterly due dates, late fee calculations, step-by-step TRACES filing, and how to file C1/C2/C3 correction statements.

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1. What is Form 24Q?

Form 24Q is the mandatory quarterly return filed by employers (deductors) detailing salary payments made and Tax Deducted at Source (TDS) under Section 192 for all employees during a specific financial quarter.

  Form 24Q Quarterly Return Structure
  ├── Annexure I (Filed Every Quarter: Q1, Q2, Q3, Q4)
  │   ├── Employer BSR Code & Challan Identification Number (CIN)
  │   ├── Employee PAN, Name, & Monthly Salary Paid
  │   └── Monthly TDS Amount Deducted & Deposited
  └── Annexure II (Filed ONLY in Q4 - Fourth Quarter)
      ├── Detailed Annual Salary Breakdown per Employee
      ├── Deductions under Chapter VI-A (80C, 80D, 24b)
      └── Tax Regime Selection (Old vs New Tax Regime 115BAC)

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2. Form 24Q Statutory Quarterly Filing Due Dates

Form 24Q returns must be filed on or before the statutory due date following the end of each quarter:

Quarter	Period Covered	Form 24Q Due Date
Q1 (Quarter 1)	April 1 to June 30	31st July
Q2 (Quarter 2)	July 1 to September 30	31st October
Q3 (Quarter 3)	October 1 to December 31	31st January
Q4 (Quarter 4)	January 1 to March 31	31st May

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3. Statutory Late Fees and Penalties

Failing to file Form 24Q on time attracts strict statutory penalties under the Income Tax Act:

1. Section 234E Late Filing Fee

• Mandatory late fee of ₹200 per day for every day of delay until the return is filed.
• Maximum Cap: The total late fee under Section 234E cannot exceed the total TDS amount deductible for that quarter.

2. Section 271H Penalty

• If Form 24Q is delayed by more than 1 year or contains incorrect information (invalid PANs, wrong challan numbers), the Assessing Officer can impose a penalty ranging from ₹10,000 to ₹100,000.

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4. How to File Form 24Q Correction Statements on TRACES

If errors (e.g., incorrect employee PAN, wrong challan mapping, or short-deduction amounts) are identified after submitting Form 24Q, employers must file a Correction Statement via TRACES:

Correction Code	Nature of Error Correction	Description
C1	Update Deductor Details	Correcting employer name, address, or responsible person details.
C2	Update Challan Details	Correcting BSR code, challan date, CIN number, or adding new challans.
C3	Update Deductee Details	Correcting employee PAN, salary amounts, or adding new employee records.
C9	Add New Challan & Deductees	Adding unrecorded tax challans and deductees to rectify short-deductions.

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5. Frequently Asked Questions (FAQ)

Q1: Can I issue Form 16 without filing Form 24Q?

No! Form 16 Part A is generated directly from the TRACES portal based on data processed from your Form 24Q Q4 filing. You cannot issue a valid Form 16 without successfully filing Form 24Q.

Q2: What happens if an employee fails to provide a PAN number?

If an employee does not furnish a valid PAN, TDS must be deducted at the higher rate of 20% under Section 206AA.

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6. Conclusion

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