Section 234-e

This query is : Resolved

Rajendra Kumar Sankhla (Querist)
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05 February 2014 Can Department ask for penalty/fee under section 234-E if return is filed without penalty/fee.

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.

It is clearly mentioned in the section 234E that fees is to be paid before filing the return.

My question is that Can Department ask for penalty/fee under section 234-E if return is filed without payment of penalty/fee.

CA ramesh

CA ramesh (Expert)
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05 February 2014 The validity of the provisions of this section is a matter of controversy and it has already been contested before the courts. There are opinions for and against the provisions of this section and no finality has been reached as yet either by judicial pronouncement or by amendment. It is advisable to file the return within the due date and avoid unnecessary litigations

A.Senthil Subramanian

A.Senthil Subramanian (Expert)
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06 February 2014 Penalty U/s 234E has been challenged in the Kerala High Court. See the following link to know more. We will wait for the proceedings by the court of law. https://www.caclubindia.com/experts/regarding-tds-penalty-u-s-234e-1586854.asp#.UtviXRC6bIU

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