Section 234E of Income Tax Act

What is Sec 234E, what is the late fees, what will be the due dates for TDS Return/statement, what are the examples of Sec.234E, what will be the maximum Late fees, What is the effect of Sec 200A(1)

 Income Tax Provisions for section 234E:-

As per the provisions of Section 234E, is the late /non-filing fees required to be paid towards the delay in submission of quarterly TDS/TCS statement to the Income Tax Department. As per Section 200(3), the quarterly return to be filed after paying the TDS return within the prescribed time.

Amount of late fee @ Rs. 200/- per day shall be paid before delivering a TDS statement”, it means that any late fee should be deposited before or at the time of delivering TDS statement and not later than this. 

Due Dates of Filing TDS Statement:-

The following are the due dates for filing TDS statement for NON-GOVERNMENT DEDUCTOR:-

Sl. No.	Date of ending of a quarter of the financial year	Due date
-1	-2	-3
1	30th June	31st July of the financial year
2	30th September	31st October of the financial year
3	31st December	31st January of the financial year
4	31st March	31-May of next financial year

Late Fees:-

As per the Income Tax provisions relating to Section 234E, a late fee of a maximum of Rs. 200 per day is levied by the Income Tax Department to be paid to the Department Of Income Tax upon the late filing of TDS/TCS return. It implied that fine will be levied for each day for a delay until the fine amount is equal to the amount of TDS is not paid. It should be noted that the late fee should be deposited before filing the TDS/TCS return, otherwise TDS/TCS return cannot be filed

Example:-

The TDS amount of Rs. 5000 is to be  paid by 13th May and if its paid-on 17th November then there is a delay of 189 days and so accordingly its late fees as per section 234E will be 189 X 200 = Rs. 37,800.

But as this amount is more than Rs 5000(as subject to TDS Amount can be levied). So accordingly only Rs. 5000 is levied as late filing fees along with the Interest as per Section 271H.

Penalty:-

It is when in case if the person fails to file the TDS/TCS return on the due dates, then the person will be required to pay penalty under section 271H in addition to the late fee applicable as per section 234E.

The penalty can be levied from Rs. 10,000 and the maximum amount can be the Rs. 1 lakh under section 271H if case the Deductor /Collector files an incorrect return.

Clarification of not applying Section 200A(1):-

Demand cannot be raised for Late fees deposit by processing the returns. Demand of late fee cannot be raised also by way of processing of TDS statement, because Sec 200A(1) of the act talks about TDS returns by a persons deducting of  any TDS, so accordingly it does not cover any such cases of TAX DEDUCTION , the provisions of Sec. 200A of the act also does not permit processing TDS statement for default in payment of late fee, except any arithmetical error, or incorrect claim, or default in payment of interest, any TDS payable or refundable etc. Section 200A also does not cover processing in cases of tax-deductible (TCS) or collectible at source (TCS).