Tds

This query is : Resolved

Kiran (Querist)
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04 February 2014 hi last month i received notice from TDS section to pay penalty for late filing of Tds return for previous year..though not on my fault we paid the amount to avoid further late fees.. but my friend told me that there is stay order issued in this regards.. can you experts please let me know the exact picture..

CA GAJENDRA KUMAR JAIN

CA GAJENDRA KUMAR JAIN (Expert)
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04 February 2014 Dear friend

Section 234E of the Income-tax Act, 1961 inserted by the Finance Act, 2012 provides for levy of a fee of Rs. 200/- for each day’s delay in filing the statement of Tax Deducted at Source (TDS) or Tax Collected at Source (TCS). The constitutional validity of Section 234E has been challenged in the Kerala High Court. Vide an interim order dated 18.12.2013, the High Court has admitted the Petition and granted a stay of proceedings for a period of two months. Please await till 18/02/2014.

A.Senthil Subramanian

A.Senthil Subramanian (Expert)
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06 February 2014 That case is enforceable in Kerala only and not for rest of India. Even there a 2 months stay only ordered and no final judgment declared. But what about in other states and is there any case is in proceeding against this 234E in supreme Court. Because this is a national issue and all Deductors are severely suffered in this regard. There must be an acceptable modification concluded about this to safeguard Dedcutors from huge penalty and in the same time strictly advice all the Deductors, the problems of Non-filing of ETDS returns in timely manner and the consequential Departmental issues in this regard to give credit to the Deductees. Penalty may compulsorily be charged from next Financial Year on-wards. So for now, in TDS all are tedious.

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