Salary TDS Computation & 24Q Annexure II (Bulk)

About the Salary TDS Computation & 24Q Annexure II (Bulk)

An employer deducts tax from salary every month at the average rate of the tax on the employee’s estimated income for the year (section 392(1) of the Income-tax Act, 2025; section 192(1) for FY 2025-26). This tool works it out for every employee of a salary register at once: drop the register (Excel or CSV — one row per employee with the year’s figures), and for each employee it computes the year’s tax under the regime they chose with the engine of the live income-tax calculator — salary of this and earlier employers, perquisites, HRA and other exemptions, professional tax, the standard deduction and the declared deductions — then the TDS still to deduct and the TDS for each remaining month.

For FY 2025-26 it gives the fourth-quarter salary details in the columns of Annexure II of Form 24Q (the fields of Protean’s salary detail record, with the section 16 and Chapter VI-A lines), and for every year an Excel working for the employer’s records. It can also put each employee’s official TRACES Form 16 Part A and Part B into one PDF, matched by PAN and named by employee code, protected with the PAN or signed with your certificate. It never makes a TDS certificate. Everything runs on your device.

Common uses

• Monthly payroll: the TDS to deduct this month for every employee, from the declarations collected.
• The year-end check before the fourth-quarter statement: shortfall or excess for each employee, and the Annexure II figures.
• Distributing Form 16: one file per employee named by employee code, password-protected with the PAN.
• Comparing the regimes for employees who have not chosen yet.

How the tax and the monthly TDS are worked out

1. Salary: gross salary under section 17(1) (this employer, for the whole year as projected), perquisites (17(2)), profits in lieu of salary (17(3)) and the salary from earlier employers the employee reported. Exempt gratuity, commuted pension and leave encashment are taken off in both regimes; HRA (the least of the HRA received, rent less 10% of basic + DA, and 50% or 40% of basic + DA by city), leave travel and other exemptions only in the old regime.
2. Deductions: the standard deduction (₹75,000 in the new regime, ₹50,000 in the old), professional tax (old regime, up to ₹2,500), the employer’s NPS contribution (both regimes) and, in the old regime, 80C up to ₹1,50,000, 80CCD(1B) up to ₹50,000, 80D, 80E, 80G and home-loan interest up to ₹2,00,000 — the same limits as the income-tax calculator (the sections of the 2025 Act for Tax Year 2026-27).
3. Tax: slabs, rebate, surcharge with marginal relief and 4% cess by the calculator’s engine, rounded to ₹10.
4. TDS still to deduct = the year’s tax − TDS by earlier employers − TDS deducted so far. Without a valid PAN, TDS is at least 20% of the income when tax is due (section 397(2); 206AA). It is spread over the months left from the month you choose to March (or the month of leaving); the last month takes the rounding. An excess can be set right in the remaining months (section 392(5)(c); 192(3)).

Annexure II of the fourth-quarter statement

For FY 2025-26 the Annexure II sheet has one row per employee in the order of the “Salary Detail” record of Protean’s Form 24Q fourth-quarter file format (version 7.5), each heading with its column number of the annexure (330 to 389): PAN, name, the regime flag (Y when the employee opted out of the new regime), category (W woman, S senior citizen, O super senior citizen, G others), the period of employment, salary under 17(1), 17(2) and 17(3), the previous employer’s salary, the section 10 exemptions, the section 16 deductions, income from salary, other income, gross total income, Chapter VI-A, total income, tax, rebate, surcharge, cess, relief, net tax, TDS by this and earlier employers, and the shortfall or excess — with the landlord’s PAN when the rent is above ₹1 lakh and the lender’s for home-loan interest. Annexure II sections lists the section 16 and Chapter VI-A lines (16(ia), 16(iii), 80C, 80CCD(1B), 80CCD(2), 80D…). Copy them into Protean’s Return Preparation Utility or your TDS software. For Tax Year 2026-27 the fourth-quarter statement is Form No. 138; the Salary details sheet has the same figures to fill in its layout.

Form 16 Part A and Part B

For FY 2025-26 and earlier, the employer downloads Part A and Part B of Form 16 from TRACES (Part B is also generated on TRACES since CBDT Notification 36/2019). Drop the PDFs, or the ZIP they came in with its password: each file is matched to an employee by the PAN in its name, Part A and Part B are put into one PDF (their pages copied unchanged), named by employee code and PAN, and packed in a ZIP. You can protect each PDF with the employee’s PAN in capitals as the open password, or sign it with your digital signature certificate (.pfx or .p12) — not both, because a password added after signing would break the signature. Merging removes a signature that Part A already carried, so sign the merged files here, or keep the parts separate. For Tax Year 2026-27 the salary certificate (Form No. 130) is generated and downloaded from the portal under rule 215 of the Income-tax Rules, 2026 and is not altered here.

Limitations

• One row per employee with the year’s figures: the tool does not add up monthly payslips. Use the payroll’s year-to-date and projected amounts.
• Perquisite values come from your workings (the statement of perquisites); the tool does not value them.
• It covers resident employees and salary, house-property loss on the own home, and other income the employee declares; relief under section 89, arrears, and special-rate income are not worked out.
• Form No. 138’s fourth-quarter layout is Protean’s: the Salary details sheet gives the figures, not the file.
• Form 16 files are matched by the PAN in the file names; it does not read the PDFs.
• An aid for payroll computation, not tax advice; the employees’ declarations and proofs decide the deductions.

Privacy

The salary register, the Form 16 PDFs, their ZIP password and your certificate and its password are read in your browser and never uploaded. Nothing is kept after you close the page.