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; prescribed dues dates for filing of TDS / TCS returns; the amount of late fees payable under section 234E and Frequently Asked Questions.
Coverage of section 234E of the Income Tax Act
Provisions of section 234E of the Income Tax Act states that in case the person fails, to submit the following statements (i.e. returns) within the prescribed time limit, he shall be liable to pay late fees –
1. Statement (returns) of Tax Deduction at Source (i.e. TDS); and
2. Statement (returns) of Tax Collection at Source (i.e. TCS).
In nut-shell, if the Deductor or the Collector fails to submit the TDS or TCS returns within the following prescribed due dates, then, the late fee would be leviable as per provisions of section 234E of the Income Tax Act. The due dates for filing of TDS / TCS returns are summarized hereunder –
In order to avoid late fees payable under section 234E, the Deductor is required to file TDS return within following due dates –
| Quarter | Due date |
| April to June | 31st July |
| July to September | 31st October |
| October to December | 31st January |
| January to March | 31st May |
In order to avoid late fees payable under section 234E, the collector is required to file TCS return within following due dates –
| Quarter | Due date |
| April to June | 15th July |
| July to September | 15th October |
| October to December | 15th January |
| January to March | 15th May |
Amount of late fee payable under section 234E of the Income Tax Act
In case of default in filing of TDS / TCS return, a late fee of INR 200 per day is payable by the defaulter till the default continues. However, the maximum of late fees cannot exceed the amount of tax deductible (TDS) or collectible (TCS), as the case may be.
It is important to note that the provisions of section 234E of the Income Tax Act clearly states that in case of delay, the applicable late fee is to be paid before filing of the delayed TDS or TCS return.
Frequently Asked Questions (FAQ) on Section 234E
Q. 1 What is Section 234E?
Ans. Section 234E imposes late fee for non-filing / late filing of TDS / TCS returns. As per section 234e, the defaulter is required to pay a late fee of INR 200 per day till the failure continues. The maximum amount of late fee cannot exceed the amount of TDS / TCS.
Q. 2 Can penalty under section 234E be waived?
Ans. No, in case of failure, the penalty under section 234e of the Income Tax Act is mandatory, and the same cannot be waived off.
Q. 3 How do I pay under section 234E?
Ans. The defaulter is required to pay a late fee before the filing of the delayed TDS / TCS return.
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Is Late fee payable u/s 234E and 234F are allowed as deduction
Dear Sandeep Ji, I deeply appreciate your concerns for matters of profesional interest. However, your article on Section 234E leaves much to be desired. I am facing a problem as an Individual who has rented a house from a NRI has duly deducted and deposited TDS, however, he failed to file the return as he presumed that he was not required to file any return. Now, he is faced with 234E Fees of over Rs. 3 Lacs being the amount equal to TDS deducted.
Please provide your insight as to how one could deal with a situation like this, as the default is purely technical and venial in nature, and the penalty / fee is too harsh.