The provisions of section 271H of the Income Tax Act penalizes the Deductor / Collector who fails to furnish the Tax Deducted at Source (TDS) return or Tax Collected at Source (TCS) return within the prescribed due dates. Section 271H also penalizes the Deductor / Collector who furnishes incorrect information while filing the TDS / TCS return.

Under the present article we would understand the applicability of provisions of section 271H; prescribed due date of filing of TDS return; prescribed due date of filing of TCS return; the amount of penalty payable under section 271H and circumstances under which penalty cannot be levied under section 271H.

Applicability of the penalty provisions of section 271H of the Income Tax Act

The penalty provisions of section 271H are applicable under any of the following circumstances –

1. The Deductor fails to submit the TDS return within the prescribed time limit.

2. The Collector fails to submit the TCS return within the prescribed time limit.

3. The Deductor furnishes incorrect information while filing the TDS return.

4. The Collector furnishes incorrect information while filing the TCS return.

The person who commits any of the above defaults would be liable to pay the penalty under section 271H.

The prescribed time limit for filing the TDS return –

In order to avoid a penalty under section 271H, the Deductor is required to file the TDS return within the following prescribed time limit –

Period Due date
April – June 31st July
July – September 31st October
October – December 31st January
January – March 31st May

The prescribed time limit for filing the TCS return –

In order to avoid the penalty under section 271H, the Collector is required to file the TCS return within the following prescribed time limit –

Period Due date
April – June 15th July
July – September 15th October
October – December 15th January
January – March 15th May

Amount of penalty payable under section 271H of the Income Tax Act

As seen above, penalty provisions of section 271H apply in case of late filing / non-filing of TDS / TCS returns or furnishing of incorrect information while filing of the TDS / TCS returns.

In case the penalty provisions of section 271H get applicable, the defaulter would be liable to pay a minimum penalty amount of INR 10,000, however, the maximum penalty amount may extend till INR 1,00,000.

Circumstances under which penalty under section 271H cannot be levied –

The penalty under section 271H of the Income Tax Act cannot be levied if all the following conditions are satisfied –

1. The TDS or TCS is paid to the credit of the Government;

2. The Deductor / collector has paid late filing fees and applicable interest to the credit of the Government; and

3. The TDS or TCS return is filed before the expiry of one year from the specified due dates.

Further, provisions of section 273B of the Income Tax Act states that in case the defaulter (Deductor / Collector) provides reasonable cause for the failure, then no penalty can be levied under section 271H.

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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2 Comments

  1. Anvesh says:

    If tds not deducted in time ,but Tds rates changed after next quarter.(from 10% to 2%)
    While calculating penalty which tds ang should be taken

  2. R. NANJUNDA says:

    Dear Sir.,

    Kindly confirm by oversight if the wrong PAN No. is mentioned in the quarterly or annually presently we have option of correcting the same and in future if we have correct the PAN No. we are opting the correction in the filed return and if so future whether any penalty will be levied.,

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