Section 234E of the Income Tax Act

Tax deductor and the tax collector is liable to furnish required quarterly statements (returns) under the Income Tax Act. In case of default in furnishing the said statements, late fees will be payable under section 234E of the Income Tax Act. The current article briefly explains the provisions of such late fees payable under section 234E.

Due date for furnishing TDS and TCS statements-

Before understanding the late fees provisions, let us summarize the due dates for furnishing TDS and TCS statements.

• Section 200(3) read with Rule 31A – due dates for furnishing TDS statements in Form No. 24Q or Form No. 27Q or Form No. 26Q for the Financial Year 2021-2022 (i.e., the Assessment Year 2022-2023) are as under-

• Section 206C(3) read with Rule 31AA – due dates for furnishing TCS statements in Form No. 27EQ for the Financial Year 2021-2022 (i.e., the Assessment Year 2022-2023) are as under-

Late fees for delay in filing of TDS/ TCS statement [Section 234E]-

Late fees will be payable under section 234E under the following circumstances-

• The tax deductor fails to furnish the TDS statements within the prescribed due dates; or
• The tax collector fails to furnish the TCS statements within prescribed due dates.

Amount of late fees payable under section 234E–

In case of delay in furnishing the TDS/ TCS statements, late fees of INR 200 per day will be payable under section 234E. Notably, the late fee is payable till the failure continues.

Maximum amount of late fees payable under section 234E of Income Tax Act–

In terms of section 234E(2) of the Income Tax Act, the maximum amount of late fees payable will not exceed the amount of TDS or TCS, as the case may be.