Yes, it is mandatory to include the employees with zero tax while generating the Form24Q for the last quarter. This is required, so that you can share Form 16 (Part A) with your employees. This must be done irrespective of the fact whether an employee is eligible or not for TDS deductions. Even when an employee does not come under the TDS bracket, he/she may require Form 16 for various purposes.
To include employees who are paying zero tax while generating Form24Q, perform the following actions:
- Navigate to Payroll > Admin > Form24Q. The Form24Q page opens.
- Click the Settings icon available next to the Challan tab. Form24Q settings page opens.
- Under the preferences, select the check box Include Zero It in eTds.
- Under the preferences, clear the check box Exclude Employees Without PAN and Zero IT in eTds.
- Click Save to include employees who are paying zero tax while generating Form24Q.