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.

Read Also:-

S. No. Title
1 Section 272BB Penalty for failure to comply section 203A provisions
2 Section 272B Penalty for failure to comply with provisions of PAN
3 Section 272AA Penalty for failure in complying with provisions of section 133B
4 Section 272A Penalty for failure to answer questions or furnish information / returns/ statements or allow inspections etc
5 Section 271J Penalty on professionals for furnishing incorrect information in reports / certificates
6 Section 271I Penalty for failure in furnishing Form 15CA & Form 15CB
7 Section 271H Penalty for late filing/non-filing of TDS or TCS return
8 Penalty for failure in furnishing report or furnishing inaccurate report under section 286 – Section 271GB
9 Section 271GA Penalty for failure in furnishing the information / document in Form 49D as required under section 285A
10 Section 271G Penalty for failure to furnish information / document as per provisions of section 92D
11 Section 271FB Penalty for default in furnishing return of fringe benefits
12 Section 271FAB Penalty for failure to furnish statement / information / document by an eligible investment fund
13 Penalty for providing inaccurate statement of financial transaction or reportable account- Section 271FAA
14 Section 271FA Penalty for failure in furnishing statement of financial transactions or reportable account
15 Section 271E Penalty for contravening provisions of section 269T
16 Section 271DB | Penalty for contravening provisions of section 269SU
17 Section 271DA Penalty for contravening provisions of section 269ST
18 Section 271CA Penalty for failure to collect tax at source (TCS)
19 Section 271D Penalty for contravening provisions of section 269SS
20 Section 271C Penalty for failure / non-deduction / non-payment of TDS
21 TDS Rate Chart for AY 2020-21 and AY 2021-22
22 Section 271BA Penalty for failure to furnish section 92E report
23 Section 271B Penalty for failure to get accounts audited
24 Section 271AAC Penalty in respect of certain specified income
25 Section 271AA Penalty for failure to maintain Transfer Pricing documents
26 Section 271A Penalty for failure to keep / maintain or retain books of accounts, documents
27 Section 270A(1) Penalty for under-reporting & misreporting of income
28 Section 269SU Acceptance of payment through electronic modes
29 Section 234F Late fees for default in filing of income tax return
30 Section 234E Late Fee for default in filing of TDS / TCS returns
31 Section 158BFA(2) – Penalty on undisclosed income for block period
32 Section 140A(3) Penalty for non-payment of self-assessment tax

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One Comment

  1. CA DD BanSAL says:

    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.

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