Applicability of Sections 234E and 271H in respect of fee and penalty for delay in furnishing TDS/ TCS quarterly statement and penalty for incorrect information in TDS/ TCS statement.
Section 234E – Fees for defaults in furnishing quarterly returns:
Section 234E is applicable in respect of quarterly TDS/ TCS return which is to be submitted on or after July 1, 2012.
If a person fails to deliver TDS/ TCS return within the prescribed time [sec 200(3) and/or sec 206(3)] he shall be liable to pay, by way of FEE, a sum of Rs. 200 for each day of failure.
However the fee amount should not exceed the amount of tax deductible/collectible.
With effect from July 1, 2012 it would not be possible to file a belated quarterly TDS/TCS return without payment of fees under 234E.
Section 271H: Penalty for failure to furnish quarterly TDS/ TCS return:
271H has been inserted to levy penalty in addition to the fees under section 234E; Section 271 H is applicable in respect of quarterly TDS/ TCS return which is to be submitted on or after July 2012.
A person has to pay a PENALTY of not less than Rs. 10000. It may be extended to Rs. 1,00,000.
This penalty under section 271H will be applicable under the following cases:
- If a person fails to submit quarterly TDS/ TCS return on or before the due date u/s 271H(1)(a)
- If a person furnishes incorrect information in these quarterly returns u/s 271H(1)(b)