Consequences For Late Filing of TDS Return

Following are the consequences for late filing of TDS Return -

1. Late filing Fees under section 234E

As per section 234E, where a person fails to file the TDS/TCS return on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs.200 for every day during which the failure continues. The amount of late fees shall not exceed the amount of TDS.

TDS/TCS return cannot be filed without payment of late filing fees as discussed above.  In other words, the late filing fees shall be deposited before filing the TDS return.

2.  Penalty under section 271H

a) Where a person

(i) Fails to file the statement of tax deducted/collect at source i.e. TDS/TCS return on or before the due dates; or

(ii) Files a TDS/TCS return which is incorrect;  assessing officer can impose penalty under section 271H.

b) Minimum penalty can be levied of Rs.10,000 which can go upto Rs. 1,00,000.

c) Penalty under section 271H will be in addition to late filing fees prescribed under section 234E

d) Penalty under section 271 H cannot be levied if the following conditions are satisfied -

1. The tax deducted/collected at source is paid to the credit of the Government.

2. Late filing fees and interest (if any) is paid to the credit of the Government.

3. The TDS/TCD return is filed before the expiry of a period of one year from the due date specified in this behalf

Note – Relaxation is applicable only in case of penalty levied under section 271H for delay in filing the TDS/TCS return and not in case of filing incorrect TDS/TCS statement.

e) Apart from above relaxations, assesse can get relief under Section 273A (4) and 273(B).

Recommended Read -

Due dates for filing TDS Return

Procedure for E filing TDS return

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