Friday, July 6, 2012

PENALTY ON LATE FILING OF ETDS STATEMENT INCREASED WEF 01.07.2012


on Friday, July 6, 2012

Earlier, if  e TDS return / statement is not filed with in due date then penalty 100 Rs per day is applicable subject to maximum TDS/TCS payable But this penalty has been doubled with a new provision through Finance Act 2012  wef 01.07.2012

Now Non filing or late filing of TDS return or TDS statement shall invite two penal consequence as the Finance Bill 2012-13 has inserted two new provisions – 

  • Fee for late filing : section 234E
  • Penalty for late filing or Non filing of TDS statement as per section 271H.


Fee u/s 234E for Late Filing of TDS Statement


Till now, if you file late income tax return, there is consequential penalty in form of interest u/s 234A if there was tax due as per return. Similar in line, in the same chapter, a new section 234E has been proposed to be effective from 1st July 2012, with heading “Levy of fee in certain case “to provide that if TDS statement (return) as per time prescribed, deductor will be liable to pay by way of fee of Rs 200 per day till the failure to file TDS statement continues. However, the total fee cannot exceed the amount of TDS deductible from which statement was required to be filed.
“234E. (1) Without prejudice to the provisions of the Act, where a person fails to deliver or cause to be delivered a statement within the time prescribed in subsection (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues.
(2) The amount of fee referred to in sub-section (1) shall not exceed the amount of tax deductible or collectible, as the case may be.”
Penalty for late filing or non- filing TDS statement

In addition to section 234E above, a new penalty provision has been inserted as section 271 H which provides that a deductor shall pay penalty of minimum Rs 10,000 to Rs 1 lakh for not filing the TDS statement within one year from the specified date within which he was supposed to file the statement. This amendment is also effective from 1st July 2012.

Thus , if the present due time for filing TDS statement is taken , the time upto which the penalty u/s 271H cannot be imposed are explained for any tax deduction for FY 2012-13.

Read the exact wordings of section 271H

“271H. (1) Without prejudice to the provisions of the Act, a person shall be liable to pay penalty, if, he––
(a) fails to deliver or cause to be delivered a statement within the time prescribed in subsection (3) of section 200 or the proviso to sub-section (3) of section 206C;
or
(b) furnishes incorrect information in the statement which is required to be delivered or cause to be delivered under sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C.
(2) The penalty referred to in sub-section (1) shall be a sum which shall not be less than ten thousand rupees but which may extend to one lakh rupees.
(3) Notwithstanding anything contained in the foregoing provisions of this section, no penalty shall be levied for the failure referred to in clause (a) of sub-section (1), if the person proves that after paying tax deducted or collected along with the fee and interest, if any, to the credit of the Central Government, he had delivered or cause to be delivered the statement referred to in subsection (3) of section 200 or the proviso to sub-section (3) of section 206C before the expiry of a period of one year from the time prescribed for delivering or causing to be delivered such statement.
(4) The provisions of this section shall apply to a statement referred to in subsection(3) of section 200 or the proviso to sub-section (3) of section 206C which is to be delivered or caused to be delivered for tax deducted at source or tax collected at source, as the case may be, on or after the 1st day of July, 2012.”.

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  1. kindly make a correction in two above mentioned contradictory statements :

    1. Max. penalty as per author is Rs. 2 lac (given under the heading Penalty for late filing or non- filing TDS statement ) and
    2. MAx. Penalty as per sec. 271H is Rs. 1 lac

    ReplyDelete
    Replies
    1. Thanks for pointing out now it is corrected

      Delete
  2. In addition to section 234E above, a new penalty provision has been inserted as section 271 H which provides that a deductor shall pay penalty of minimum Rs 10,000 to Rs 2 lakh for not filing the TDS statement within one year from the specified date within which he was supposed to file the statement.

    Here max penalty is Rs. 1.00 Lac instead of Rs. 2.00 Lacs.

    ReplyDelete
  3. This penalty clause applicable only for FY 2012-13 E-TDS or Earlier returns also? If any body not submitted E-TDS Returns for FY 2011-12 within due date penalty applicable or not.
    Please explain.
    Regards
    P.S.Rao

    ReplyDelete
    Replies
    1. For earlier period penalty rate was 100 per day . But generally it has not been imposed strictly by the department.

      Delete
    2. if 2009-10 and 2010-11 and 2011-12 return has not filed till date then what will be late filling consequences. will laate fees laviable for all years.

      Delete
  4. Can I use linux software to create xml file for uploading in the site

    ReplyDelete
    Replies
    1. we have no idea but You should try at least

      Delete
  5. Hi Sir, I forget to file my previous employer form16 for this year 2012-13. What should i do to include my previous employer form16 ?
    If I include my previous emplyr, than i need to pay the tax, but i cant pay the tax amount before 31st july due to financial pblms. Now what should i do ?

    ReplyDelete
    Replies
    1. Tax is required to be paid ,if you don't have money then you should wait for few more days and pay the tax after wards

      Delete
  6. Hi, i have a housing loan which is not self occupied and i havent claimed my hra amount in form16 so wanted to claim while efiling,so what i have done in itr1 in sr no2 where loan interest amnt needs to be filled which is arnd Rs 1,32000 along with that i have added Rs 100000 as HRA amnt so the total amount i have put is Rs 2,32000.
    Is this correct?

    ReplyDelete
    Replies
    1. pLS ASK IN DETAIL OR call helpline

      Delete
  7. What is your helpline number. I wanted to call.

    Payal juneja.

    ReplyDelete
  8. one company has not filed TDS return since TDS is not remitted for the last 6 months which is amounting to Rs.38 crores. If it is not remitted and filed before 30th Sept. what would be the penalty and other implications?

    ReplyDelete
  9. A school run by a NGO trust known to me had deducted the TDS amount due on employee( mostly teachers) salaries and paid the same on time. But the clerk responsible for filing the TDS returns failed to file the TDS deduction returns for 2007 to 2012 years. How can they now regularise this default? What is the penalty to be paid? How can they get the same waived? Is there any authority who can be approached for waiver and regularising the same? Pls send the reply to [email protected]

    ReplyDelete
    Replies
    1. First thing the trust should do is file pending tds returns .Don't worry about penalty .

      Department is more or less interested in compliance and not in charging penalties .So in most of the case late filing penalties has not been charged

      Delete
  10. If by mistake wrong assessment year is selected how do i rectify

    ReplyDelete
    Replies
    1. In return year is selected automatically and wrong return will not be uploaded in any case.

      Delete
  11. Sir we have deducted the Tax on Salaries and remitted on due dates, but not filed the TDS return so far (for the current financial year). Can we file the returns now ? What will be the implications ?

    ReplyDelete
  12. Sir, Is there any appropriate authority to whom prayer for waiver of fees levied u/s235E for late filing of TDS return can be made

    ReplyDelete
  13. Sir we have filed tds return late for which we received a demand notice to pay late filing fee. Rs. 200/- per day.Please suggest the way how we can appeal for waive off the same as it is our 1st year for TDS.

    ReplyDelete
  14. Hello Sir,
    We have miss to filed TDS return for 2nd & 3rd quater for FY 2011-2012. what charges is applicable if we filed return in current period or only int. payment for late filing will be levied on Client.

    ReplyDelete