• Jan
  • 07
  • 2014

File TDS return on time to avoid Penalty / Late Payment Fees

Posted In Income Tax | , | 15 Comments » Print Friendly and PDF

CA Sandeep Kanoi

The due date for Filing TDS returns for the quarter Oct-Dec 2013 is 15th Jan, 2014. We request all the deductors to file there TDS returns in time to avoid penalty / Fees for late filing of return. Income Tax Department has WEF 1st of July 2012 imposed a late filing fees of Rs. 200 per day Under section 234E of the Income Tax Act, 1961 for late filing of TDS return which can be up to TDS amount.

Here we would like to mention that the  no action or appeal can be made against the fees charged by department for late filing of TDS Return U/s. 234E as in view of the department the same is not penalty but the fees for late filing of return.

20943196In addition to fees department can also levy a penalty under section 271H of the Income Tax Act, 1961 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.

So its better to file return TDS return on time. Deductors who file return through professional should submit the details to them on time and make sure that they file the return in time.

Full Text of the Section 234E as per Bare Act is as follows :-

Fee for default in furnishing statements.

234E. (1) Without prejudice to the provisions of the Act, where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues.

(2) The amount of fee referred to in sub-section (1) shall not exceed the amount of tax deductible or collectible, as the case may be.

(3) The amount of fee referred to in sub-section (1) shall be paid before delivering or causing to be delivered a statement in accordance with sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C.

(4) The provisions of this section shall apply to a statement referred to in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C which is to be delivered or caused to be delivered for tax deducted at source or tax collected at source, as the case may be, on or after the 1st day of July, 2012.]

Full Text of the Section 271H as per Bare Act is as follows :-

[Penalty for failure to furnish statements, etc.

271H. (1) Without prejudice to the provisions of the Act, a person shall be liable to pay penalty, if, he—

(a)  fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C; or

(b)  furnishes incorrect information in the statement which is required to be delivered or caused to be delivered under sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C.

(2) The penalty referred to in sub-section (1) shall be a sum which shall not be less than ten thousand rupees but which may extend to one lakh rupees.

(3) Notwithstanding anything contained in the foregoing provisions of this section, no penalty shall be levied for the failure referred to in clause (a) of sub-section (1), if the person proves that after paying tax deducted or collected along with the fee and interest, if any, to the credit of the Central Government, he had delivered or cause to be delivered the statement referred to in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C before the expiry of a period of one year from the time prescribed for delivering or causing to be delivered such statement.

(4) The provisions of this section shall apply to a statement referred to in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C which is to be delivered or caused to be delivered for tax deducted at source or tax collected at source, as the case may be, on or after the 1st day of July, 2012.]

Read More about Penalty and fine on late filing of TDS return :-

Fees & Penalty for late / Non filing of TDS Return


15 Responses to “File TDS return on time to avoid Penalty / Late Payment Fees”

  1. Sayali Mahajan says:

    on 4th of September i filed the tds Q2 return , but on 5 September there is a update was uploaded , request you to sir please tell me do is there any problem may arise,,??? waiting for your replies

  2. Bhushan says:

    Dear sir,

    Paid Interest challan on Default notice how to process after paid challan

  3. NISHANT says:

    WHEN A TAN NO APPLIED ON MAY 2014 AND ISSUED BY NSDL ON 05.06.2014 THAN WHAT REMEDY APPLICABLE IN LATE TDS DEPOSITED AND LATE FILLING OF RETURN
    KINDLY SUGGEST ME

  4. sushila tuscano says:

    we have deposited interest and tds amount in same challan showing interest seperately in challan
    while filing return also we have shown interest seperately
    still default is created
    please help me out if i have missed anything

  5. Joykumar says:

    Non filing of Form 24G by TOs often leads to delay of filing e-tds by DDOs. In the case of delay due to late generation of BIN, who is liable to pay the late fee/penalty @ Rs.200 per day per quarter- TO or DDO? Why should DDO pay late fee for his no fault. IT Dept should not blindly impose penalty. Instead they should check when BIN was generated first, then when e-tds was filed by the DDO. there is penalty for late filing of e-tds. But is there penalty for late generation of BIN? Don’t put the horse before the cart. Kindly advise.

  6. D. Diswas says:

    Monthly accounts are submitted to Pay & accounts as they act as agent of Reserve Bank of India. income tax deduction also shown. No money transactions are happened during Income Tax deduction of contractors & staffs. submission of statement may be happened delay due to non availability of computer facility & untrained personnel also short fall of staffs to act as on be half of the INCOME Tax Deptt. of India, besides DDOs are busy with their own duties for which they are paid , not paid by the income tax department .so why the DDOS will be charged fine for Late submission of TDS. Income tax department may contact with the Pay & accounts deptt. of the concerned State or Reserve bank of India to know the revenue from whom they have received or they may engaged there officer to collect data from the DDOs for their departmental interest or make some head of accounts where the DDOs can deposit Cheque with detail statement favoring the Income Tax Department. Every one should keep in mind that Govt. Deptt. are not Equip & trained with online Business. Rethinking is required from the govt. lelel.

  7. Ashwini says:

    I have file the tds return of financial year 2008-2009 to 2012-2013,
    department send me notice of penalty and interest on late filing of return ,
    i paid all the amount of penalty and interest of all the notice which was due on me, after the payment of dues department send again notice for payment.
    what will i do for this. should i file the returns again? Please help me

  8. ABHIJIT MAJUMDAR says:

    IT IS A HUGE BURDEN TO THE SCHOOLS AND GOVT DEPARTMENTS ,IN CASE OF FAILURE TO SUBMIT TDS RETURNS HOW THEY WILL PAY SUCH A HUGE LATE FEE.MANY RURAL SCHOOLS ARE LOCATED FARAWAY FROM TOWN ,IT IS VERY MUCH POSSIBLE THAT WITHIN ONLY 15 DAYS FILING OF TDS RETURN IS IS NOT HAPPENED,THERE MUST BE SOME LENIENCY,UCH STRICTNESS IS VERY UNFORTUNATE AT LEAST THERE SHOULD BE SOME SCOPE OF APPEAL

  9. NAVEEN GOYAL says:

    hi
    on 3rd of january i filed the tds q3 return ,, but on 4 or 5 january there is a update was uploaded ,, request you to sir please tell me do is there any problem may arise,,???
    waiting for your replies

  10. S P SHARMA says:

    Dear Sir,
    DDO is liable to pay LATE FEES & PENALTY for not filing e-tds/e-tds return but in DARJEELING-WEST BENGAL all the state government offices draw their salary through DARJEELING TREASURY OFFICE and DARJEELING TREASURY OFFICE is lible to file FORM 24G and have to issue BIN for filing e-tds return to all DDO’s. As you know there is no option to file e-tds/e-tcs returns without having BIN and Darjeeling Treasury Officer is not filing FORM 24G retun in time and due to these reasons the respective DDO’s are received notices of LATE FEE from TRACES. It is the fault of TREASURY OFFICE then why the DDO will have to pay LATE FEES. Please guide me the options to save the DDOs

  11. Mohan T says:

    My residence has shifted to another area which comes under the control of another IT office.
    Can I file the ITR with the same AO with whom I have been filing my return for the last 15 years.

  12. Ashok kumar chandra says:

    Please known whether interest free unsecured loan permitted or not in IT Act.

  13. PARTHA MONDAL says:

    Hi,
    what is the date of Q2 Correction Return (Revised)?

  14. NAVEEN GOYAL says:

    hi
    on 3rd of january i filed the tds q3 return ,, but on 4 or 5 january there is a update was uploaded ,, request you to sir please tell me do is there any problem may arise,,???
    waiting for your replies

  15. c p chugh says:

    With the NSDL acceptance of TDS/TCS statements going online, all are advised to submit quarterly statement well in advance. No one knows the strength of NSDL Portal with so many (thousands of) TIN_FC logining and uploading statement may cause server break downs. ITD’s is not going to listen if your statement could not be submitted on or before due date and TDS CPC online processing software would invariable calculate late fee u/s 234E. Better to be wise and furnish before time.

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