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.
Page Contents
- Applicability of the penalty provisions of section 271H of the Income Tax Act –
- The prescribed time limit for filing the TDS return –
- The prescribed time limit for filing the TCS return –
- Amount of penalty payable under section 271H of the Income Tax Act –
- Circumstances under which penalty under section 271H cannot be levied –
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.
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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
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.,