CA Sandeep Kanoi

Income Tax Department has collected whooping Rs. 17497 crores as late filing fees for delayed filing of TDS/TCS quarterly return for the period from 01-04-2013 to 31-10-2014 i.e. in just 19 months.

In a reply to an application under RTI Act filed by CA Subin V R from Thrissur Income Tax Department has revealed the total amount collected under section 234E of the Income Tax Act in the financial year 2013-14 and from April 2014 to October 2014. As per the reply order dated 22-12-2014 the amount so collected is as under:

Period Count Amount Collected in Rs. Crores
Financial Year 2013-14 186549 10134
April 2014 to October 2014 127839 7363
Total 314388 17497
The section 234E related to levy of late fee for default in furnishing TDS/TCS Statements has become effective from 01-07-2012.  According to the provisions of section 234E, where a person fails to deliver or cause to be delivered a statement within the time prescribed then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. But the amount of fee shall not exceed the amount of tax deductible or collectible, as the case may be.

It is to be noted that various High Court has already granted stay against Recovery of Late  fees U/s. 234E for default in furnishing TDS/TCS Statements.  Details of Such cases is as follows :-

Recently ICAI has in its pre-budget Memorandum requested government to Give Amnesty to TDS deductors from Fees under section 234E for defaults in respect of all TDS statements pertaining to FY 2012-13 and FY 2013-14 and also requested the time limit to file quarterly TDS return for non-government deductors be also increased to 30 days as available to the government deductors.  But the government has not accepted the same.  Read More-Give Amnesty to TDS deductors from Fees under section 234E – ICAI 

So Section 234E Late Fees become a Milking Cow for the Government and there seems to be no possibility of it been taken back by the Government considering the Huge Revenue impact it may have.

Download Reply on RTI Filed by CA Subin V R from Thrissur

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Company: Taxguru / Sandeep Kanoi & Associates
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Tags : CA Sandeep Kanoi (282) RTI (160) rti act (168) Section 234E (59)

0 responses to “Penalty U/s. 234E fetches revenue of whooping Rs. 17497 crores”

  1. Manoj Kumar says:

    How to pay the late filing fee in 281 challan or interest on demand payment of TDS on property

  2. Ani G says:

    Brothers, this is the legacy of previous govt because their only aim was to loot the general public (officially through taxes, levy cess and penalties) more the Govt income more opportunity to spend and more share of Babus and Netas in the form of commissions. Unfortunately the present Govt has no interest in reviewing such laws, so they are no different.
    If someone took a decision to buy a house before this rule he did so without knowing that tomorrow he will have to undergo this additional pain, and who knows if this greedy govt comes up with more of such absurd laws. General public is so powerless that it is one sided game.

  3. Linga Reddy says:

    Hi

    Rs.17,500 crores only from the entities only .Now the department has planed to Isuue notice for Delay in filing 26qb u/s 194IA ..

    U/S 194IA -Person buying the immovable property has to deduct and remit the TDS by using from 26qb ..

    For any delay Interest @1.5% per month or part of the month .

    and Rs.200 per day as late filing fee..

    How the Individual person(Employees ) know the laws of the country without creating awarnes among the public ..

    By using 234E Govt will collect another 20,000 crores from the Person who bought the house value more than Rs.50 lacs and Remitted TDS late.

    This amount will be with the span of 20 months from the introduction of section 194IA ..

  4. Adv. Bhavesh Popat, Mku says:

    What is the intention of finance ministry to apply new section 234E & 272A and other come soon section attract for penalty/fees ?
    A salaried person working hard in all months to serving his family needs & businessmen invest his money/time for contribution in development as paying huge tax regularly,it is sufficient for developing India (infrastructure & Policies) but not sufficient for corruption!
    If tax Payer has already to pay all taxes & their interest,then only delay of few days/months for submission of returns and other formalities the huge penalty attract it is unjustified in nature.
    If It is Justified, Then first imposed PENALTY/FINE/FEES TO THOSE ELECTED MEMBERS OF NAGARPASIAD/VIDHANSABHA/LOKSABHA IN ALL SECTORS, WHO ARE NOT COMPLETE THEIR MANIFESTO/PROJECTS/NEEDFUL NECESSITY OF GENERAL PUBLIC WITH IN THEIR ELECTED PERIOD (1/3/5 YEAR). Govt.ALSO UNABLE TO REACH THEIR SCHEMES IN ALL STATES & PERSON TO PERSON IN HIS PERIOD OF PROJECT. THEN WHY SUCH TAX PAYER ARE RESPONSIBLE?
    SO MANY TOWNS & VILLAGES IN MAHARASHTRA WHERE THEIR IS NO TIN-CENTER, AND GENERAL TAX PRACTITIONER FACE INCONVENIENCE TO FILING. SO PLEASE TRY TO FIRST OPEN TIN- CENTER IN MAX, TOWNS.
    IF GOVERNMENT WANTS TO COLLECT DATA OF TDS PAID & THEIR DETAILS, BEST WAY IS LOGIN FROM RESPONSIBLE PERSON OF TAN HOLDER ALONG WITH DIG. SIGNATURE AND UPLOADED DATA IN xml file DIRECTLY ON TRACES SITE (i.e. Income tax return filed without any costing but in stipulated time) IT MAY BE POSSIBLE FOR ALL AND ESSAY WAY TO COLLECT DATA QUICKLY.

  5. sadashiv Gaikwad says:

    15 days due date for non government is unfair means of revenue.

  6. A.Senthil says:

    In this situation I want to share my view also. TDS is deducted for the help of Government and ETDS work and Charges connected there to are bourned by the Deductor, for this ETDS work. So the ultimate beneficiaries are, the Central Govt and Deductees. If Penalty u/s 234E imposed on the default by the deductor, he further suffered. So Incometax Department must see this fact and kindly remove or postpone the penalty u/s 234E and first properly inform and educate the Deductors in this regard. Because TDS Money properly deposited to the central govt, and only ETDS returns are delayed. Further there is acceptable shortage in ETDS return preparers and filers also. This is because of low income and high tension work on ETDS. All are causes for delay in ETDS filing. So deductors strongly oppose penalty u/s 234E and Department must reconsider their penalty u/s 234E and may postpone the same. In the same time the Deductors must understand the problems of No-filing of ETDS returns. Because there must be a acceptable rule to file the ETDS returns. In the same time Deductors must realize their important part of work in this regard and must take due care to file ETDS in time. Particularly the Government Deductors must give due attention in this regard. They must come forward to know about TDS and procedures.

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