- Jul
- 06
- 2012
Penalty for Late Filing & incorrect information in TDS/TCS Statement wef 01.07.2012
Fee and penalty for delay in furnishing of TDS/TCS Statement and penalty for incorrect information in TDS/TCS Statement
As per the existing provisions of the Income-tax Act, a deductor is required to furnish a periodical TDS statement (quarterly) containing the details of deduction of tax made during the quarter by the prescribed due date. A substantial number of the deductors are not furnishing their TDS statement within the prescribed due date. Delay in furnishing of TDS statement results in delay in granting of credit of TDS to the deductee and consequently results into delay in issue of refunds to the deductee tax payers or raising of infructuous demand against the deductee tax payers. Further, in large number of cases, the deductors are not furnishing correct information like PAN of the deductee, amount of tax deducted, etc. in the TDS statement. Furnishing of correct information in respect of tax deduction is critical for processing of return of income furnished by the deductee because credit for TDS is granted to the deductee on the basis of information furnished by the deductor.
Under the existing provisions of section 272A, penalty of Rs.100 per day is levied for delay in furnishing of TDS statement, however, no specific penalty is specified for furnishing of incorrect information in the TDS statement. The said provisions of penalty are not proved to be effective in reducing or eliminating defaults relating to late furnishing of TDS statement.
In order to provide effective deterrence against delay in furnishing of TDS statement, it is proposed –
(i) to provide for levy of fee of Rs.200 per day for late furnishing of TDS statement from the due date of furnishing of TDS statement to the date of furnishing of TDS statement. However, the total amount of fee shall not exceed the total amount of tax deductible during the period for which the TDS statement is delayed, and
(ii) to provide that in addition to said fee, a penalty ranging from Rs.10,000 to Rs.1,00,000 shall also be levied for not furnishing TDS statement within the prescribed time.
In view of the levy of fee for late furnishing of TDS statement, it is also proposed to provide that no penalty shall be levied for delay in furnishing of TDS statement if the TDS statement is furnished within one year of the prescribed due date after payment of tax deducted along with applicable interest and fee.
In order to discourage the deductors to furnish incorrect information in TDS statement, it is proposed to provide that a penalty ranging from Rs.10,000 to Rs.1,00,000 shall be levied for furnishing incorrect information in the TDS statement.
Consequential amendment is proposed in section 273B so that no penalty shall be levied if the deductor proves that there was a reasonable cause for the failure.
Consequential amendment is also made in section 272A to provide that no penalty under this section shall be levied for late filing of TDS statement in respect of tax deducted on or after 1st July, 2012.
Amendments on the similar lines for levy of fee and penalty for delay in furnishing of TCS statement and furnishing of incorrect information in the TCS statement are also made.
These amendments are applicable from 1st July, 2012 and will, accordingly, apply to the TDS or TCS statement to be furnished in respect of tax deducted or collected on or after 1st July, 2012.
Sandeep Kanoi+
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on what circumstances exemption will be received if the notice u/s 272A(2)k)has received? Please give the example/refrences/case laws regarding above sec.
Please reply.
DEAR SIR,
I WANT TO KNOW ONE THING SIR, THAT IF I FILED A NIL TDS RETURN OF A PARTY EVEN AFTER DUE DATE…THEN ON THAT TIME WILL PARTY LIABLE TO PAY PENALTY OR NOT. AND ONE MORE THING THAT IS IT MANDATORY TO FILLED A NIL TDS RETURN. SUPPOSE WE ARE NOT AWARE OF TDS LIABILITY RIGHT NOW. THEN WE CAN FILED NIL RETURN OF TDS OF PARTY IN THIS MOMENT. AFTER THAT WE GOT THAT PARTY IS LIABLE TO DEDUCT TDS BUT TDS HAS NOT BEEN DEDUCTED BY PARTY.On THAT TIME WHAT PROCESS SHOULD WE FOLLOW.?? COMMENT PLZ SIR.
Dear Sir,
If we are making payment for late filing fees for late submission of E-TDS Return on say 16th of January, 2013, so do we need to pay Rs.200/- only.
Also wanted to know if we are paying it Online in Challan 281 Under which Section we have to pay this late filing fees and we have to select Other Payments there ?
Plz.reply on given e-mail id @ the earliest.
Thanks.
SUPRABHAT DEB
ACCOUNTANT
ACS SHIPPING PRIVATE LIMITED
6th Floor, Room No. 5
6, Little Russel Street
Kolkata – 700 071
TEL: +91 33 2289 5972 / 5973 / 5974 /5975
FAX: +91 33 4006 0556
email: ccuaccts@acslindia.net
Skype: taxguid
DEAR SIR,
PLEASE PROVIDE ME DETAILS FOR TCS ON COAL SALE, ON WHICH HEAD WILL IT BE PAID WILL IT FALL UNDER MINING OR MINERALS AND ALSO THE ACCOUNTING HEAD WHERE THE CHALLAN WILL BE PAID.
WARM REGARDS,
JUSTIN MASIH
which type of payment code select whn we filied epayment for late filling tds return… coz there is no opetion for other section..
IF THE INFORMATION IS WRONG IN THE SENSE MAJOR CODE I.E. COMPANY-NONCOMAPNY ONLY,
WILL IT ALSO MAKE DEFAULTER UNDER SECTION 271 H.
MY QUESTION IS BY WHICH CHALLAN LATE FEE IS REQUIRE TO BE PAID FOR LATE FILING TDS RETURN
Dear Sir,
If we are making payment for late filing fees for late submission of E-TDS Return on say 16th of July, 2012, so do we need to pay Rs.200/- only or it will be Rs.600/- as if we pay online on 16/07/2012 then .csi file will take at least one day to show challan at NSDL Site so it will come there on 17/07/2012 and we file return on 18/07/2012 so there will be 3 days delay and late filing fees will be Rs.600/- so always we need to add 2 days late filing fees when ever there is late filing of E-TDS Return henceforth.
Also wanted to know if we are paying it Online in Challan 281 Under which Section we have to pay this late filing fees and we have to select Other Payments there ???
Plz.reply on given e-mail id @ the earliest.
Thanks.
Due date of filing TDS return Qtr. 1 is 15 july 2012 ( sunday will be open TIN Facilitation center)
THe article has been taken from the budget 2012-13. This had come through the finance act which was assented by the president on 28.05.2012.
DUE DAT OF FIRST QTR RETURN IS 14 JULY2012
The article is dated 06 jul 2012, but talks “proposed amendments” w.e.f 01.07.2012
has this
“proposed amendments” come into effect ?
if so, what is the relevant notification / press release.
pl confirm the exact details – whether “proposed” or already effective from 01.07 ?
notification reference
what is the due date for efiling TDS Q1 for Ay 2013-14?
Dear Sir,
Thanks for sharing, But I am facing problem in default generated. I revise the return after depositing interest for late payment. But still default is not being removed. Please tell me how can be removed default.
Thanks
Should be implemented with immediate effect .
CA.Subhash Chandra Podder, FCA.
Kokata
06/07/2012
what is the due date for efiling TDS Q1 for Ay 2013-14?