(Q1.)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 by the Income Tax Act 1961, then person shall be liable to pay a sum of INR 200 for every day during which the failure continues. The amount of late filing fees shall not exceed the amount of TDS/TCS deducted/collected.
(Q2.)From Which Financial Year Onwards Section 234 E is applicable?
- Section 234E is applicable from F.Y 2012-13, Quarter 2 i.e., from 1st of July 2012 onwards.
(Q3.)Will there be any demand, If I have not paid any demand of Late filing fee U/S 234E within stipulated time?
- Yes, 1% Interest on late filing fee payable amount u/s 220(2) is levied when Deductor fails to pay demand within 30 days from the order pass date of Default Notice.
(Q4.)Is there any provision to waive off demand?
- No, provision to waive off demand through TRACES. Deductor may contact the Jurisdictional Assessing Officer to waive off demand.
(Q5.)If Deductor is filing regular statement for F.Y 2008-09 now, will he get late filing fee from TRACES?
- No, late filing fee under Section 234E is applicable from FY 2012-13, Quarter 2 onwards.
Notes: On or before 1st of July 2012, u/s 272A Deductor shall be liable to pay by way of penalty (it is a discretion of Assessing Officer) of Rs 100 per day till the failure to file TDS/TCS statement continues. (Q6.)What should I do in case of demand notice u/s 234E Late Filling received? - Follow the steps mentioned below:
- The default amount will have to be deposited through Challan number ITNS - 281 by selecting minor head '400'.
- After payment of Challan, User needs to add challan to statement using "Online Correction Functionality - available on TRACES and mention late filing fee payable amount in "Levy" column of the challan while add challan to statement.
