• Oct
  • 17
  • 2013

Fees & Penalty for late / Non filing of TDS Return

No filing or Late filing of TDS returns or TDS statement shall invite 2 penal consequence 1.Fee for late filing U/s 234E and 2. Penalty for late filing or Non filing of TDS statement U/s 271H.

Fee U/s 234E for late filing of TDS Statement:

If you filed late income tax return, there is consequential penalty in form of interest u/s 234A if there was tax due as per return. Similarly in the same chapter new section 234E has been proposed to be effective from 1st of July 2012, with heading “Levy of Fee in certain case” deductor will be liable to pay by way of fee of Rs 200 per day till the failure to file TDS statement continues, However, the total fee cannot exceed the amount of TDS deductible for which statement was required to be filed.

Penalty for late filing or non- filing TDS statement

Similarly a new penalty provision has been inserted as section 271H which provides that a deductor shall pay penalty of minimum Rs 10,000 to Rs 1 lakh for not filing the TDS statement within one year from the specified date within which he was supposed to file the statement. This amendment is also effective from 1st July 2012.

Thus, if the present due time for filing TDS statement is taken, the time up to which the penalty u/s 271H cannot be imposed are explained for any tax deduction for FY 2012-13

Sl. No

TDS Statement

Due date

Date up to which no penalty u/s 271H can
be imposed


30th June

15th July 2012

15th July 2013


30th September

15th October 2012

15th October 2013


31st December

15th January 2013

15th January 2014


31st March

15th May 2013.

15th May 2014

At the time of preparing statements of tax deducted, the deductor is required to mandatorily quote:

(i)  his tax deduction and collection account number (TAN) in the statement;

(ii) his permanent account number (PAN) in the statement except in the case where the deductor is an office of the Government( including State Government). In case of Government deductors “PANNOTREQD” to be quoted in the e-TDS statement;

(iii) the permanent account number PAN of all deductees;

(iv)furnish particulars of the tax paid to the Central Government including book identification number or challan identification number, as the case may be.

(v) furnish particular of amounts paid or credited on which tax was not deducted in view of the issue of certificate of no deduction of tax u/s 197 by the assessing officer of the payee.

(Article was first published on 13.04.2012 and republished with amendments on 17.10.2013)

Sandeep Kanoi

22 Responses to “Fees & Penalty for late / Non filing of TDS Return”

  1. Nitin Grover says:

    Dear All

    Late fee under section 234 E is chargeable if return is late filled or you can say penalty will be continued till you dont file the return @ 200 Rs per day. Maximum Penalty may be equivalent to TDS Amount.

    271 H is penalty section where penalty is minimum 10,000 rs which may be extend to Rs 1 lac. This penalty is applicable in following written cases.

    1. If a person fails to submit returns
    2. If a person furnishes incorrect information


    CS Nitin Grover
    +91 – 95 82 00 94 94

  2. AshokJayanti says:

    sir can you tell me what code (11c or n11c) has to be entered while paying penalty for late filing of itr. I was levied a fine of 560/- for submission of itr in nov 2013

  3. ishan says:

    If payment of late fee and fines is made….. then is it required to file the return again????

  4. RONAK SHETH says:

    Dear Sir My Clint First time comes in tax audit so he dedcut tax and ffill etds return ater due dates and we received a notice of 234e ????

    What can now do

  5. Srinivas Natekar says:

    I believe as per circular late fee of Rs.200/= per day is for filing of original return. Is this applicable for amended TDS/TCS returns. The dept. has issued notice to pay late fee for amended statement (PAN No. rectification). TDS is really TEDIOUS.

  6. NAGESWARA says:


  7. T.C.Narayanan says:

    Which challan should be used for payment of interest u/s 234E and interest for late payment ? can we use 280 for both or are there two seperate challans ? is it sufficient to mention PAN only as in 280 only pan can be entered ?

  8. Arun Raj says:

    There is no provision for waiver or deletion of levy of fee.

  9. Arun Raj says:

    Section 234E of the Income Tax Act- Legality and Validity challenged in the High Court of Kerala

    The legality and validity of section 234 E of the Income Tax Act, 1961 inserted by the Finance Act, 2012 making a person liable to pay, by way of fee, a sum of Rs 200/-for each day’s delay in filing the statement of Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) is challenged in the High Court of Kerala. The levy in the nature of ‘fee’ has been challenged as illegal, arbitrary, unreasonable, invalid and unconstitutional, in a writ petition filed by a Lower Primary School in Kannur.
    The Honourable High Court has admitted the writ petition and has stayed all the proceedings initiated against the petitioner under section 234E of the Income Tax Act for a period of two months. The standing counsel for the Income Tax department has taken notice for all the respondents in the writ petition.


  10. Avinash says:


    my question is that is there is any option for wavier of the penalty of late filing of tds return .

  11. vipin says:

    very nice

  12. Prakash says:


    i in one client case we have received late fees and interst demand above Rs. 61000/- there have in late fee and interest also how which section i put this amount.

  13. ANIL KUMAR K says:

    in one client case we have received late fees demand above Rs. 40000/- and not able to decide how to proceed

  14. Rajesh Patel says:

    Sir will anyone give idea about 234e, if some reason State Government Deductor (Book Entry) late fill 24Q Return, so 234e is apply.

  15. kushal says:

    Sir will anyone give idea about 234e . I have recd a notice for late filing of TDS RETURN. This is just because of marriage ceremony. At auditor son he filed return little late. What has to be done now? Whether to pay demanded amount and any other options.

  16. Bimal Gunjarwala says:

    Does it attracts for Non filing of TDS Return for NIL liability? If I do not have any liability arised, then also I have to file the NIL Return? If yes, what if I failed to file NIL Return?

  17. Prakhar says:

    I have a doubt if i fail to Deposit TDS of more than one Parties than also i have to deposit Rs. 200/- only.

  18. Navi says:

    whether provisions of sec. 271H regarding penalty for non filing of tds return will be attracted in case of nil return

  19. Sumon says:

    My company has submitted the TDS against a wrong PAN number and the same shows in my Form 16 as well. I tried searching the wrong PAN number in the e-filing website only to get a error message “This PAN number does not exist in our database”. Can you confirm if this means that no PAN with such number has been issues at all?

  20. Vijay says:

    Please refer Sec 271H which clearly states that wrong information will attract fine of minimum Rs.10000 and may extend upto Rs 100000/-.


    Returns with incomplete information should also be treated at par with  returns which has not been filled.

  22. vicky parmar says:

    Can e-tds return filed with incomplete details attract the Provisions of Section 234E?
    Say e-tds return filed with NIL data or a dummy data to avoid 234E and subsequently submitting the correction statement.

    Kindly comment in this situation.

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