Sep 272012

Penalty for Late Filing of TDS Statement / Returns

Fees & Penalty are likely for instances such as –

  • Non-filing of e-TDS Statement / Returns.
  • Late filing of e-TDS  Statement / Returns.
  • Incorrect PAN, TDS Amount and Other Mandatory details.

This imposition of Fees & Penalty is implied by Section 234E & Section 271H.

Dear Deductors!  (Read Carefully)

The TDS filing Fees & Penal provisions are as follows –

Section 234E speaks of Levy of Fees effective from 1st July 2012

–  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 speaks of Penalty effective from 1st July 2012

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.

Not filing TDS before the deadline or with incorrect details is literally going to lose out on your hard-earned money.