FAQ on Late TDS/TCS Filing

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What is the Late Filing Fee u/s 234(E) of the Income Tax Act, 1961?

As per section 234E, where a person fails to file the TDS/TCS statement on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of INR 200 for every day during which the failure continues. The amount of late fees shall not exceed the amount of TDS/TCS. In other words, late filing fees shall be deposited before filing the TDS statement. It should be noted that INR 200 per day is not penalty but it is a late filing fee.

From Which Financial Year onwards Section 234 E came into existence?

Section 234E is applicable from FY 2012-13, Quarter 2 onwards.

For demand of Late filing fee U/S 234E, I was not able to pay the default in stipulated time, now will I be charged some interest also?

If any default is not paid within stipulated time, then interest of sec 220(2) will be applicable.

I filed TDS statement on or before the due date through third party vendor and received acknowledgement for the same. However, I received an intimation u/s 234E for late filing. What should I do?

Acknowledgement issued by third party vendor received while filing the TDS statement through third party vendor does not mean that original TDS/TCS statement successfully filed at TIN-FC on time. An acknowledgement carrying fifteen digit provisional receipt number, SAM value & HASH value issued by TIN-FC is the proof of TDS/ TCS statement successfully filed and date of filing mentioned on the same will be considered for all purpose at TDS-CPC

If TIN-FC doesn’t accept regular statement by giving excuse that their server is not working and due to which if deductor is not able to submit statement within due date and deductor is arguing that it’s not his fault and he won’t pay this late filing fee. What should be done in this scenario?

Deductor has to contact the Jurisdictional Assessing Officer and submit the valid supported documents.

If deductor is filing regular statement for F.Y 2008-09 now, will he get late filing fee from TRACES?

No. Section 234E is applicable from FY 2012-13, Quarter 2 onwards.

What should I do on receipt of demand notice u/s 234E Late Filling?

The default amount will have to be deposited through Challan no ITNS-281.

Add Challan to statement using Online Correction Functionality available on TRACES. In case of Government Deductors, addition of challan to statement can be done through RPU as well.

For closure of late filing fee default, fill up the fee amount in ‘Fee’ column in challan details through Online Correction by clicking on Request for Correction under Default tab and select Pay 220/LP/LD/LF/ Interest u/s 220 category.

Please note that once the challan is added to the statement using the Online Correction Functionality, further corrections can also be done by downloading latest Conso File.

Can late filing fee be waived off?

No, Late filing fee cannot be waived off.

Source: TRACES

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