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 TDS return on time will result in fees on the deductor.
- If you delay or forget to file your TDS return, fees of Rs. 200 per day will be levied on the deductor, as long as TDS return is not filed.
- The levied amount of fee is not supposed to exceed the TDS deductibles.
- Prior to TDS filing such fee should be paid and it should be reflected in the TDS return.