Section 234E : TDS Late filing fees

Section 234E : Late filing fees and penalty for failure to furnish / delay in furnishing of TDS / TCS Statements

Basic rules of TDS / TCS 

  1. Obtain TAN Number for deduction or collection of tax under income tax.
  2. Make payment to the government by challan on or before due date.[March – 30th April | Other Months – 7th of Succeeding month]
  3. File the TDS / TCS returns before due date. [Q1 – 31st July | Q2 – 31st October | Q3 – 31st January | Q4 -31st May]
  4. Issue TDS / TCS certificate before due date to the concerned person.

Penalty for breaking the rules

Penalty is applicable under Section 234E as well as under Section 271H, in this part we are discussion on the penalty provisions as per Section 234E. Section 271H shall be dealt with separately.

Penalty will be equal to Rs.200 per day of delay in filing of TDS returns however, it shall not be more than the amount to be deposited to the department.

For Eg. If the amount to be deposited to government is Rs.3000 and there is 20 days delay the penalty shall be capped to Rs.3000 and shall not be Rs.4000.

Computation of penalty

Section 200A of the income tax act provides for processing of TDS statements for the purpose of determining the amount payable or refundable to the deductor. Similar provisions are contained in Section 206CB for processing of TCS statements.

Procedure to comply with penal provisions

Pay 234E using the TDS challan by selecting Fees under section 234E. Once filed revise the statements to include this challan and file it by selecting penalty in the statement.

This article is for information purpose only. Care has been taken to include the proper details however, if any improvements can be made or in case of any clarifications please use the comment box below. You can also contact me at mrpraveenca@gmail.com

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