If the deductor is charged penalty amount u/s 234E then this penalty has to be paid to the Income Tax Department using Challan No. 281, and this penalty cannot be waived under any circumstance.
What is Section 234E ?
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.