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

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Category : Income Tax (20875)
Type : Articles (10816) Featured (3633)
Tags : CA Sandeep Kanoi (235) Section 234E (46) Section 271H (9) TDS (786)

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