• Jan
  • 11
  • 2015

Fees & Penalty for late / Non filing of TDS Return

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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 2014-15

Sl. No

TDS Statement

Due date

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

1

30th June

15th July 2014

15th July 2015

2

30th September

15th October 2014

15th October 2015

3

31st December

15th January 2015

15th January 2015

4

31st March

15th May 2015.

15th May 2015

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)


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

  1. Preeti Sharma says:

    A party has not filed its TDS RETURN for F.Y. 2009-10, but now they want to file its tds return in F.Y. 2015-16. Pls tell what will be the penalties and other consequences for late filing od TDS return as the return is related to the F.Y. 2009-10 where provision of late filing fee of Rs. 200/- day was not applicable.

  2. ankita says:

    the payment of tds of Q1 has been made on 21th july 2015 on Rent with interest. And it is not filed in 1st quarter can it will be filed in 2nd quarter or I have to pay the penalty upto 21st july and file the return in 1st quarter as well

  3. Dhiraj bafna says:

    TDs paid but e filling not done what would be the penalty

  4. Pravin Korde says:

    Dear All,
    I have a question about unfiled TDS.
    I am part of state govt.institution. We haven’t filed TDS till now.
    we are willing to file now but what would be penalty for it?
    We have filled all the tax in 5 months.
    we have challan receipts.
    Please guide of what should be done next!
    Thanking you in advance!
    Regards,
    Pravin Korde.

  5. R.K.MAKHARIA, says:

    ADD TO MY ARTICLE DT.15.MAY 2015 IN COL.no.5 below;-
    This was the main reason,cause,that indulged a huge no of ASSESSEES INTO TRAP OF NEWLY,UNKNOWN SEC 234E OF I.T.ACT.The RTI,INFO RECALLED DT.22.12.14, BY CA SUBIN VR OF THRISSUR,FROM D.I.T.(SYSTEMS),NEW DELHI SUPPORTS AS UNDER;-
    F.YR. NO.OF ASSESSEE(DEDUCTORS) AMOUNT(cRORE)
    2013-14… 1,86549 RS.10134
    APRIL.14TO oct14.1,27839 RS. 7363
    R.K.MAKHARIA .DT.8TH JUNE 15.

  6. A K BAGARTY says:

    My office is a central government office have filed income tax Q4 for the financial year 2014-2015 having mistake of PAn No. of a individual on 01.05.2015 .Now IT department has issued a letter for deposit Rs.50000 within one month

    Kindly advice this this situation

  7. A.K. SAINI says:

    dear sir,

    PLease confirm late ffees for Form-iv late file in uttrakhand

  8. R.K.MAKHARIA, says:

    According to S.C. verdict in number of cases,when no tax element is there,Penalty initiation is totally wrong.Similarly,when law provides for corrections/revision,in a return/statement/levying of penalty is unwaranted,unjustified.

  9. R.K.Makharia says:

    M/s TAX TOPPERS, Dear Sir,
    Thanks for your e .mail message dt.07th January^15 chapter named “ AMNESTY TO TDS DEDUCTORS FROM FEES UNDER SECTION 234E “ INCOME TAX.
    You have very briefly ,boldly, responded on the cronic chapter, faced by crores of I.Tax Assessee s (Deductors) . In this concern ,I would like to put forth some more genuine facts ,which
    Led to laps ,failure on such a large scale ,by Deductors of TDS ,in timely submitting of TDS Statements/returns ,as laid in the new provisions of the Act.
    1. Earliar, the TDS statement filing was 30th June , was revised to 15th May, for a/c. ended in March ,every year.
    2. That, penal provision for delay/non filing of TDS statement was made through F.Act,2012 w.e.f.15.07.2012. instead of 1st April 2012.
    3. The effective date was firstly ,fixed on the middle of the F.Yr. through this Act,2012 @ Rs200/-per day basis.
    4. Hence ,most of Assessees, failed, misunderstood, Unaware, to file timely ,return, to the Dept.
    5. No Awareness/Advertisment, about this new provisions was made to Deduct or, to a lert, avert, the Deductors, & streameline the tax collections, as done in Advance Tax, return filing, etc. stages. 6.The (a)The Supreme court had also laid down principles of justice in “ Hindustan steel Ltd.Vrs.State of Orissa,83 ITR 26 “,that penalty would not be ordinarily imposed unless the party obliged either acted deliberately in defiance of law or was guilty of conduct contumecious or dishonest or acted in conscious disregard of its obligations. 6.Deductors, excepting the Govt. Have been given Exemptions through CBDT circular, debarring the Public Deductors. The Public Deductors, are also unaware, unpracticed, about this new date &, cumbursome process of statement filing .They thought, that the previous schedule(30th june) was the actual – last date to submit such statements. This causes led to sustain such a extreme unbearable losses to mass people.
    7.There should not be double standard ,Inequality policy adopted for treatment with the Govt .deductors , &the Public Deductors Assessees.
    8. It is requested, that one chance should be given to Private Deductors also, in lieu of Govt.ones , atleast who have timely paid the Deducted TDS amounts with Govt.
    Thanks & waiting for your response.
    (R.K.Makharia,Raipur CG Dt.12.th May 2015-05-15)

  10. Rajesh says:

    had not filled 3rd qtr return and now i have to file this can you tell me how much they will charge to us ?
    as late filling penalty

  11. verma jyoti says:

    I have received intimation u/s 200a notice of demand u/s 156 for the pmt of levy of fee u/s 234e

    PLEASE MAIL ME BACK HOW TO EXECUTE LATE PAYMENT

    AGAINST MY PAN /E.FILING SITE THERE IS NO PENDING ACTION

    HOW TO PAY ON LINE
    PLEASE GUIDE

  12. m. f. haque says:

    Delay may have genuine reasons.Penalty of huge amount for delay in filing information is atrocious,arbitrary and against the norms of justice in a democratic country. Esteemed CBDT should consider waiving such penalties imposed mechanically

  13. manoj says:

    Sir,
    I am working in school we got two notice from i.t.that is late penalty charges.we file return yearly not quarterly. i am newly appointed in school my principal not guide me to file return quarterly. now we got penalty notice. my question is we pay the penalty.?
    please guide me. and i got information over all india people file a case in court for the same matter.that is applicable for me.
    waiting for ur reply

    your
    manoj

  14. Shivani says:

    Sir I paid all of my tax due to me but failed to fill my e tds return. does it attract penalty for 2013-2014

  15. BHARAT says:

    TDS of 2012-13 in not filed yet now client need to file that. Than what is the interest amount .

  16. Mahesh says:

    Dear Sir

    Hotel Bill Boarding and lodging bill for my company exceed Rs.180000/- in the month of November 2014, now i have to deduct from first bill TDS ok which i have deduct but one thing should i know should i need calculate the Interest from April 2014, If please Tell and Send me the Notification copy

    With Regards
    Mahesh

  17. Amol Gajmal says:

    I am an accountant. one of our client has failed to deduct tds on gross 25000 which is 2500/- after that they are bearing tds from his own pocket then which gross amount will be taken for tds return filing.

    Extra details are follows:

    Party Name: ABC

    Invoice of fees is Rs. 25000/-
    TDS not deducted from payee but paid to goverment with payee PAN is Rs. 2500/-

    Bill book of rs. 25000 of ABC

    Journal entry : professional fees a/c dr. 250000
    To Abc A/c 25000

    then what is the entry of payment???? (with TDS)

  18. Niraj Jani says:

    We used once Challan in two different qtr by mistake….so we rcd a notice oh short payment (overbooked)..

    for correction we filed return with editing previous challan but cpc rejected…

    How can i solve this default??

    any suggestion?

    Thanks in advance….

  19. Nikhil Bhingarde says:

    Sir i m employee of nationalised bank, tds deducted on int on tdr is deposited by our bank on autosystem . However due to lack of proper communication between our branch and our ca we come to know that 26 q return is not filed scince qtr 1 of 2012-13. Now we are filing the same please late me branch tds know the late filing leavy we have to pay. Considering the small branch tottal tds for each quarter never exceeds rs 1000 for each quarter, please guide.

  20. rakesh says:

    what is the status of writ filed in court……whether the stay continues…..writ no.

  21. Sagar says:

    sir

    tds paid on professional fees rs. 4000 in may 2014 and tds return filed not yet done. how return file saving penalty is any option for that.

  22. MOHAN says:

    dear sir,

    we have apply TAN OCTOBER month and my books of accounts starting date is 1st apral 2014 late filing is passable.

  23. neha says:

    Sir we have deposit tds challan of fy 2010-11. but forget to file tds return at that time. Now there is demand raised of these amount to deductee income tax return because he claimed deduction of this amount 10-11 IT return.
    So Please tell what optio we have to sought this demand.

  24. Arun Kumar Mehta says:

    Penalty u/s 271H for Q3 of 14-15cannot be imposed before 15.1.2016 and not 15.1.2015 as stated by you. Similarly Q4 of 14-15 penalty cannot be imposed till 15.5.2016 and not 15.5.2015 as stated above.

  25. malti says:

    Sir, Do an Charitable trust who has deducted TDS for Professional Fees & not filed TDS return have will be penalised for late filing

  26. Neeraj Dxiti says:

    Dear sir,

    i am a govt department i have filed the tds return up to 31st march 2013 but not file return of all quarter of 2014 and last 3 quarter . if now i am filled the tds return than department impose huge penalty .now is it possible to filed tds return of oct to dec-14 only. if i filed only last quarter return than how much penalty impose by the department .

  27. rajeshwari says:

    sir,
    i wants to know that if Tds generate with errar can we filled Tds return

  28. Jignesh Vyas says:

    My client has filled tds return 24 of first quater on 28th Jun. cpc has rejected it. but mail of rejection has been not sent. When my client has tried to download online form 16 he has found that figures of first quarter are not included. After verification they have found that his first filled return has been rejected. He has to filed second time his 24q1. Now, TDS cell is demanding late fees near about Rs.40,000/-. This is the fault of their system. What should we do now?

  29. CA Amit Ganar says:

    Dear All

    Please wait and do not pay any penalty U/s 234E as writ petition is filled and High court yet to decide on the issue.
    Secondly Income tax department drop the penalty of government offices and do not refund who had paid earlier.

    CA Amit Ganar
    9096305551
    Pune

  30. Rakhi says:

    Dear Sir,

    Without depositing the tax amount, can we file the return of 26Q.

  31. DG Pillai says:

    Sir,
    I am a government employee and my tax is deducted at source.I have received a notice u/s 245 for an outstanding demand(Section code 1431A) of Rs 1.75 lakhs indicated in my IT account for the AY 2009-10 for which I filed my tax return manually based on Form-16(TDS certficate) on time and received the acknowledgement also.It is understood that my employer has deducted the tax on time but deposited it late.Despite my plea to AO of the IT department or to my employer,the demand is still outstanding.What should be my course of action to rectify this anomaly which is no fault of me..Kindly advice
    regards
    DG Pillai

  32. sandeep mishra says:

    sir,
    iam late filing company tds retrun, tds paymnet in currect time filing on late tds retrun 26q&24q total 4 quarter late filing , how many actual penality, total years tds late filing how meny amount please replay
    – See more at: http://taxguru.in/income-tax/budget-2012-late-filing-filing-tds-statement-costly.html#sthash.wEXjZM7c.dpuf

  33. srinivas says:

    sir,

    iam late filing company tds retrun, tds paymnet in currect time filing on late tds retrun 26q&24q total 4 quarter late filing , how many actual penality, total years tds late filing how meny amount please replay

  34. SANTAN says:

    I have filed Q2 tds return as on 18.10.2014. i received a notice for Rs.660/-. Is their any way to waive it. else how will i deposit this fine amount. Please suggest suitable challan and process for it

  35. ramappa says:

    Dear sir

    Without payment of TDS amount, can we file quarterly TDS return ?

    Please help me regarding the above.

    Thanking you

  36. ankush soitkar says:

    sir i have miss q1 tds return and yet not file cause i have deposit the amount of tds of first quarter in aug – 14 and now deposit second quarter tds amount so now i want to file both quarter tds return can i file it and how much will be interest or penalty

  37. Rama Rao says:

    Rama Rao,
    Sir, i am working at Construction Company hyderabad. In this company so many sub contractors working. from Acct Year 2012-13, & 2013-14 the company paid every month advance amount to me and deducted TDS from my advance amounts (from two years) and my company failure deposit to governament somany lakhs of amount. so how can i complaint to income tax department and how can i submit my IT Returns.

  38. Rinki says:

    Dear Sir,

    Please advice is it compulsory to pay late filing levy?
    Also let me know what is the difference between late filing fees & late filing levy?

  39. maninder singh says:

    Sir
    We have missed to file tds return Q26
    for the quarter Second 2013-2014
    ie 1-07-2013 to 31-10-2013
    please advise how to overcome the penalties
    Thanks

    yours faithfully

  40. Mary Nelson says:

    Sir,

    my company get a notice for delayed tds return Rs. 74000/-,

    can any way to wave off this amt ?

  41. K Thiyagarajan says:

    What is the difference between late filing fee and late filing levy?

  42. MUKESH says:

    THIS IS NOT FAIR FOR DDO THAT PENALTY IMPOSED BECAUSE THEY DEDUCT TAXES IN TIME IS VERY COOPERATION TO IT SO THE PENALTY WAIVED FOR GOVT. DEPT.

  43. vinod sharma says:

    BANGALORE: In a big relief for several employers and businessmen, the Karnataka high court has stayed for four weeks the operation of series of demand notices sent by the Income Tax department asking them to pay penal fees in relation to non-filing of TDS statements.

    Justice Jawad Rahim passed an interim order to this affect while asking Income Tax department and ministry of finance to file their replies.

    Several employers as well as assessees under TAN have moved the court challenging the penal provisions under newly inserted section 234E of the Income Tax Act ,1961 connected to filing of TDS returns by employers.

    “The incorporation of Section 234E to the IT Act with effect from July 1,2012 has at one stroke ,deleted all the favorable and beneficial sections- an appeal under section 246(1)(l)(ii) of the Act and also waiver of penalty under section 273B itself .Now it is mandatory and compulsory on the deductees to pay fee at Rs.200 per day till the date of filing/submitting the TDS statement to TDS reconciliation analysis and correction enabling system, Ghaziabad. Failing which, the deductor/s will be totally debarred from filing their TDS statement itself and as a further consequence , they will not be competent to issue Form No.16 or 16A as stipulated under section203 of the IT Act to the dedctee/s.” the petitioners have stated.

    “If they continue defaulting section 234E of the Act, then they would be further subjected rigorous penal provisions of having to shell out penalty at Rs.100 per day, as set out in Section 272A(2)(g), in case recipient/deductee claims credit of the TDS in his return of income tax” the petitioners have claimed.

    The petitioners have stated that levy of fee is against the scheme of the Income Tax Act and the word ‘fee’ is an alien word by itself vis-a-vis the Income Tax Act.

  44. SANJOY KUMAR DAS says:

    I have to pay additional tax amount Rs 20049 for the yr 2013-14 and assessment yr 2014-15. Can I pay the amount thru internet banking? what shall be the interest/penalty for the same? How i can get the code for it

    Kindly comment

    SK Das

  45. SANJOY KUMAR DAS says:

    I have to pay additional tax 20049 for the year 2013-14 and assesment yr 2014-15. Can i pay the amount through Internet banking? If penalty/ interest is to be paid, what will be amount and code for the same?

    Kindly suggest

    SK Das

  46. 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

    Regards

    CS Nitin Grover
    nitinsgrover
    +91 – 95 82 00 94 94

  47. 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

  48. ishan says:

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

  49. 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

  50. Srinivas Natekar says:

    Sir
    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.

  51. NAGESWARA says:

    HOW MUCH FOR RATE OF INTEREST FOR MONTH NON FILING OF TDS RETURN AND HOW MUCH PENALTY PER DAY OF TDS LATE FILING?

  52. 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 ?

  53. Arun Raj says:

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

  54. 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.

    [email protected]

  55. Avinash says:

    sir

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

  56. vipin says:

    very nice

  57. Prakash says:

    sir,

    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.

  58. 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

  59. 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.

  60. 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.

  61. 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?

  62. 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.

  63. Navi says:

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

  64. 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?

  65. 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/-.

  66. RAJESH CHANDER GUPTA says:

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

  67. 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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