TDS, Form 16 and Form 24Q

How tax is deducted each month, and how to get the quarterly return data and Form 16 out.

Monthly TDS

When TDS is on in Payroll Settings, every payroll works out the year's tax and spreads it over the remaining months. It uses:

• the employee's tax regime (old or new, set in their profile),
• their investment declarations (old regime only),
• salary and TDS from before they joined, or from a previous employer, if you've entered it.

Salary and TDS from before

If someone earned salary earlier in the same financial year, TDS has to count it:

• New joiner from another company: they enter the figures from their Form 12B / Form 16 in pre-boarding, and the figures are added automatically when you create the employee. Or HR adds them under Employee Salaries → Earlier income this year.
• Your company started Orgwise in the middle of the year: in Employee Salaries, click Import earlier TDS, download the template, fill one row per employee (source before_orgwise) and upload it.

Form 24Q (quarterly)

Statutory Reports → Form 24Q builds the quarter's workbook with every deduction. Add your challans (BSR code, date, serial number) and the person responsible for TDS once; they're filled in for you. Give the file to your tax consultant or use it in the return utility.

Form 16

1. Download Part A from TRACES as usual.
2. In Statutory Reports → Form 16, upload the Part A files. They are matched to employees by PAN.
3. Orgwise makes Part B and joins it with Part A.
4. Click Publish: employees can download their Form 16 from Payslips.

You can also download everything as one ZIP.

Who needs this?

Form 24Q and Form 16 are only for companies that deduct TDS from salaries. If nobody's salary is above the taxable limit and you deduct no TDS, you can skip them.

Not working?

A Part A file wasn't matched. The PAN in Orgwise is missing or different. Fix the PAN in the employee's profile and upload again.

TDS looks too high early in the year. Check the investment declaration and the regime. In the old regime, deductions only count once declared.

Frequently asked questions