TDS/TCS Return filed after 15.05.2014 may causes Penalty, Levy of Fees and more as per Income Tax Act. If TDS/TCS Deductor have not yet filed TDS returns for Asstt. Year 2014-15 i.e. Quarter-IV, filed return as early as possible.
As per Section 243E, if a person fails to deliver the TDS statement or TDS return in the prescribed time, then he shall be liable to pay a fine of Rs. 200 per day till the default continues subject to a maximum of the total amount of tax deductible.
What are the Fees and Penalty for Late Filing of TDS Returns ?
Section 234E – Levy of Fees
As per Section 243E, if a person fails to deliver the TDS statement or TDS return in the prescribed time, then he shall be liable to pay a fine of Rs. 200 per day till the default continues subject to a maximum of the total amount of tax deductible.
What are the Fees and Penalty for Late Filing of TDS Returns ?
Section 234E – Levy of Fees
- Failure to submit e-TDS Statement on time will result in fees on the deductor.
- If you delay or forget to file your e-TDS Statement, fees of Rs. 200 per day will be levied on the deductor, as long as TDS Statement is not filed.
- The levied amount of fee is not supposed to exceed the TDS deductibles.
- Prior to filing of TDS Statement such fee should be paid and it should be reflected in the TDS Statement.
Section 271H – Penalty Deductor has to pay a penalty ranging from minimum of Rs. 10,000/- to One Lac rupees,
- If deductor exceeds one year time limit to File TDS Statement.
- If deductor furnishes incorrect details like PAN, TDS Amount, Payment of Challan etc.
For more details on Consequences of TDS defaults, Click here
Default/ Failure
|
Section
|
Nature of Demand
|
Quantum of demand or penalty
|
Failure to deduct tax at source
|
201(1)
|
Tax demand
|
Equal to tax amount deductible but not deducted
|
201(1A)
|
Interest
|
@1 % p.m. of tax deductible
| |
271C
|
Penalty
|
Equal amount of tax deductible but not deducted
| |
Failure to deposit tax at source
|
201(1)
|
Tax demand
|
Equal to tax amount not deposited
|
201(1A)
|
Interest
|
@1.5% p.m. of tax not deducted
| |
276B
|
Prosecution
|
Rigorous imprisonment for a term for a minimum of 3 months which may extend to 7 years and with fine
| |
Failure to apply for TAN No. u/s 203A
|
272BB
|
Penalty
|
Rs. 10000
|
Failure to furnish prescribed statements u/s 200(3)
|
272A(2)(k)
|
Penalty
|
Rs. 100 every day during which the failure continues subject to maximum of TDS amount
|
Failure to issue TDS certificate u/s 203
|
272(A)(g)
|
Penalty
|
Rs. 100 every day during which the failure continues subject to maximum of TDS amount.
|
Failure to furnish statement of perquisite or profit in lieu of salary u/s 192(2C)
|
272(A)(i)
|
Penalty
|
Rs. 100 every day during which the failure continues subject to maximum of TDS amount
|
Failure to mention PAN of the deductee in the TDS statements and certificates
|
272B
|
Penalty
|
Rs. 10000
|
If TDS return is not filed within the specified due dates being 15th July, 2013 for the 1st quarter corresponding to FY 2013-14, the major consequences would be levy interest.
However in case of payments made under sec. 194A, 194C, 194H, 194I and 194J in respect of individual and HUF, only if the turnover or professional receipt exceeds sum of Rs. 1 Crore or Rs. 25 Lacs respectively in previous year, there is a requirement to deduct tax at source.
