Thursday, January 9, 2014

Stay Granted on late Fees u/s 234E on late filing of TDS return by Kerla Highcourt


on Thursday, January 9, 2014

S. 234E of the Income-tax Act, 1961 inserted by the Finance Act, 2012 provides for levy of a fee of Rs. 200/- for each day’s delay in filing the statement of Tax Deducted at Source (TDS) or Tax Collected at Source (TCS). The constitutional validity of s. 234E has been challenged in the Kerala High Court. Vide an interim order dated 18.12.2013, the High Court has admitted the Petition and granted a stay of proceedings for a period of two months.

Complete section is given below.
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 sub-section (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.
(3) The amount of fee referred to in sub-section (1) shall be paid before delivering or causing to be delivered a statement in accordance with sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C.
(4) The provisions of this section shall apply to a statement referred to in sub-section (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.

WRIT PETITION (CIVIL 31498 of 2013 

NARATH MAPILA LP SCHOOL Vs. UNION OF INDIA

Pet's Adv. : SRI.S.ARUN RAJ 

Res's Adv. : 

Last Listed On : Wednesday, December 18, 2013 

Category : Income Tax Act
Source :ITAT online


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  1. on what grounds the school has challenged. Secondly how will this help those deductors who has received notices.

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    Replies
    1. Details are not available yet , We will try to publish details as soon as available with us

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  2. This stay apply only for Kerala State or Other States

    ReplyDelete