The last date of filing TDS returns for the third quarter of FY 2014-15 falls due on 15th January 2015. It is very important to file returns on time because late filing of TDS returns not only delays TDS Credits to the deductees but also attracts late filing fees and penalties.
Non filing / late filing of TDS return shall invite two penal provisions:
1. Fee for late filing as per section 234E
2. Penalty for late filing or non filing of TDS statement as per section 271H
Section 234E – Levy of Fees
· Failure to submit e-TDS Statement on time will result in fees on the deductor.
· If you delay or forget to file your e-TDS Statement, fees of Rs. 200 per day will be levied on the deductor, as long as TDS Statement is not filed.
· The levied amount of fee is not supposed to exceed the TDS deductibles.
· Prior to filing of TDS Statement such fee should be paid and it should be reflected in the TDS Statement.
Section 271H – Penalty
· Deductor has to pay a penalty ranging from minimum of Rs. 10,000/- to One Lac rupees,
o If deductor exceeds one year time limit to File TDS Statement.
o If deductor furnishes incorrect details like PAN, TDS Amount, Payment of Challan etc.
Deductors across the country receive demand notices from Income Tax Department for the payment of fees for late filing of TDS returns. Therefore, it is necessary to prepare correct TDS returns and file them on time to avoid these notices.