The Deductor of tax (TDS) or the Collector of tax (TCS) is required to file the TDS / TCS returns within prescribed due dates. In case of any delay, the Deductor or the Collector would be liable to pay a late fee for non-filing / late filing of TDS / TCS returns as per provisions of section 234E of the Income Tax Act. The current article covers the provisions of section 234E of the Income Tax Act

Levy for Late filing of TDS Statement (Section 234E of Income Tax Act)

  • 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.
  • 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.
  • 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.
  • 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.

You are advised to pay the outstanding demand at an early date to avoid Penal Interest u/s 220(2) of the Act apart from intimation of other recovery proceedings as per Income Tax Act, 1961. If the demand has already been paid, you are requested to file a Correction Statement by tagging the challan and the Justification report can be verified for closure of demand, if the revision has already been submitted and processed.

How to pay Section 234E demand:

The following steps shall help you analyze and pay the demand:

  • Download the Justification Report from TRACES portal to view your latest outstanding demand.
  • On downloading the Justification Report.Use Challan ITNS 281 to pay the above with your relevant Banker or use any other Challan, which has adequate balance available
  • Download the Conso File from Traces portal.
  • In case of payment towards late filing fee, please Tag the challan towards the payment, in the “Fee” column”  using RPU Ver. 3.8, mentioning appropriate amount in such column and validate to generate the FVU.
  • Submit the Correction Statement at TIN Facilitation Centre.
  • The demand can also be paid by using the Online Correction facility.

Must Read :-

Fees & Penalty for late / Non filing of TDS Return

HC stays Late Filing Fees U/s. 234E for late filing of TDS return

Things to be done on receipt of demand notice u/s 234E Late Filing

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

Republished with Amendments

More Under Income Tax

0 Comments

  1. gchandiprasad says:

    SIR,
    if we pay the late fee, that amount will appear in nsdl website against our tan view in chalan status query after two or three days only.
    the etds return will be uploaded only if the chalan file (CSI File ) is imported.
    the CSI file wll be ready only after two or three days we pay the late filing fee.
    by that time, the delay will be more by two or three days.
    again an additional amount fof 400 or 600 is to be paid.
    how to solve this ?

  2. Ganesh says:

    With the issue of stay order by Kerala High Court and pending writ petitions in other High courts for this section, is it necessary to pay this fees? The charging section 4 of the act is talking about levy of additional tax only which implies there is no authority to levy fees..

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