Section 234E: Late Filing Fee for TDS/TCS Statements

Responsibilities of the Person Liable to Deduct/Collect Tax at Source (TDS/TCS)

Beyond the responsibility to file TDS/TCS statements on time, there are several crucial duties associated with being a deductor/collector of tax at source.

Duties of the Person Liable to Deduct/Collect Tax at Source:

• Determining TDS/TCS Applicability
• Obtaining PAN/TAN
• Calculating and Deducting/Collecting the Correct TDS/TCS Amount
• Depositing TDS/TCS with the Government
• Issuing TDS/TCS Certificate (Form 16/16A)
• Filing TDS/TCS Statements
• Record Keeping
• Compliance with TDS/TCS Regulations

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Due Dates for Filing TDS/TCS Returns

Due dates for filing TDS/TCS returns are given in below table:

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Fees & Penalty for late/Non-filing of TDS Return

When it comes to TDS/TCS return filing, there are strict deadlines and consequences for missing them. Here's how fees and penalties you may be charged:

Late Filing Fee under Section 234E

This penalty applies under Section 234E of Income Tax Act if you file your TDS/TCS return late or miss the deadline altogether. It's a fixed charge of Rs. 200 per day for every day the return remains unfiled after the due date. There's a safeguard, however. The total late filing fee cannot exceed the total amount of TDS/TCS you were required to deposit with the government. This ensures the penalty stays reasonable.

Penalty for Late Filing under Section 271H

A more severe penalty applies under Section 271H if you wait a significantly longer time to file your TDS/TCS return. This penalty kicks in if you haven't filed the return within one year from the due date. Here, the Assessing Officer determines the exact penalty amount, which can range from a minimum of Rs. 10,000 to a maximum of Rs. 1,00,000. It's important to note that this penalty is on top of the late filing fee under Section 234E, so the consequences for extremely delayed filing can be significant.

In summary, timely filing of TDS/TCS returns is crucial to avoid these financial penalties. Remember, there's a daily charge for late filing, and waiting over a year to file can result in a much steeper penalty assessed by the authorities.

Here's a table summarizing the Fees & Penalty:

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