The provisions relating to levy of fee for delay in furnishing TDS and TCS statements have been restructured under the Income-tax Act, 2025. The earlier Section 234E of the Income-tax Act, 1961 is now covered under Section 427, effective from 1st April, 2026.
This restructuring retains the requirement of timely filing of TDS/TCS returns and continues to impose a fee for delays, ensuring compliance with reporting obligations.
Quick Reference – Section Mapping & Reporting
- New Section (IT Act 2025): Section 427
- Nature of Provision: Fee for default in furnishing TDS/TCS statements
- Earlier Section (IT Act 1961): Section 234E
Applicability
Fee under this section is applicable in the following cases:
- Late filing of TDS or TCS returns
- Non-filing of TDS or TCS returns
- Furnishing incorrect information such as:
- Incorrect PAN
- Incorrect challan details
- Incorrect TDS amounts
Late Filing Fee
- A fee of ₹200 per day is levied for delay in filing
- The fee is calculated from the due date till the date of filing
- The total fee shall not exceed the amount of TDS/TCS deductible or collectible
Additional Penalty
Apart from the late filing fee, an additional penalty may be imposed:
- Minimum: ₹10,000
- Maximum: ₹1,00,000
This applies in cases of:
- Failure to file returns
- Filing incorrect details
Due Dates for Filing TDS and TCS Returns
| Quarter Period | TDS Return Due Date | TCS Return Due Date |
|---|---|---|
| April – June | 31st July | 15th July |
| July – September | 31st October | 15th October |
| October – December | 31st January | 15th January |
| January – March | 31st May | 15th May |
Exceptions to Penalty under Section 271H
Penalty may not be imposed if:
- TDS/TCS is deposited to the credit of the government
- Applicable interest and late filing fee are paid
- Return is filed within one month from the due date
Recent Amendment
- Earlier, returns could be filed up to one year after due date without penalty under Section 271H(3)
- This change enforces stricter compliance timelines
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