Penalty for Non-Filing of Quarterly TDS Return Failure to file a quarterly TDS return within the due date attracts late fees and penalties under the Income Tax Act. The penalties are primarily covered under Section 234E and Section 271H. 1. Late Fee Under Section 234E If the quarterly TDS return isRead more
Penalty for Non-Filing of Quarterly TDS Return
Failure to file a quarterly TDS return within the due date attracts late fees and penalties under the Income Tax Act. The penalties are primarily covered under Section 234E and Section 271H.
1. Late Fee Under Section 234E
If the quarterly TDS return is not filed within the due date, a late fee of ₹200 per day is applicable until the return is filed. However, this fee:
✔️ Cannot exceed the total amount of TDS deducted.
✔️ Must be paid before filing the return.
Example:
- If TDS return is delayed by 20 days, the late fee = ₹200 × 20 = ₹4,000.
- However, if the total TDS deducted is ₹3,500, the maximum late fee will be ₹3,500 (not ₹4,000).
2. Penalty Under Section 271H
Apart from the late filing fee under Section 234E, an additional penalty under Section 271H may be imposed if the TDS return is not filed within one year from the due date.
📌 Penalty Amount: ₹10,000 to ₹1,00,000.
📌 Applicable for:
✔️ Non-filing of TDS return.
✔️ Filing an incorrect TDS return (if not corrected in time).
🔹 When is the penalty under Section 271H NOT levied?
If the taxpayer meets all the following conditions:
✔️ TDS has been deposited to the government account.
✔️ Late fee under Section 234E has been paid.
✔️ TDS return is filed before the expiry of one year from the due date.
3. Interest on Late Deposit of TDS (Section 201(1A))
If TDS is deducted but not deposited to the government, interest is charged:
🔹 1% per month from the due date of deduction to the actual deduction date.
🔹 1.5% per month from the deduction date to the date of payment to the government.
4. How to Avoid Penalty?
✔️ File TDS returns within the due dates:
- Q1 (April – June) → 31st July
- Q2 (July – September) → 31st October
- Q3 (October – December) → 31st January
- Q4 (January – March) → 31st May
✔️ Ensure timely payment of TDS to the government.
✔️ If delayed, file at the earliest to minimize penalties.
✔️ Apply for a waiver under Section 271H if eligible.
Final Thought
Failure to file a TDS return attracts late fees, penalties, and interest. If you have missed the deadline, file the return immediately to minimize the financial impact. If required, you can appeal for waiver of the penalty under Section 271H by showing a genuine reason.
Please refer to the link on how to avoid late fees and penalties on the TDS return.
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Yes, there are certain ways to avoid or minimize the penalty imposed for failure to furnish a TDS return under the Income Tax Act. The penalties are primarily covered under Sections 234E and 271H of the Act. 1. Understanding the Penalty for Late Filing of TDS Return Late Fee under Section 234E: A fiRead more
Yes, there are certain ways to avoid or minimize the penalty imposed for failure to furnish a TDS return under the Income Tax Act. The penalties are primarily covered under Sections 234E and 271H of the Act.
1. Understanding the Penalty for Late Filing of TDS Return
Late Fee under Section 234E:
Penalty under Section 271H:
2. Ways to Avoid or Reduce the Penalty
✅ File the TDS Return at the Earliest
✅ Request for Waiver of Penalty under Section 271H
✅ File an Appeal to the Commissioner of Income Tax (CIT) (Appeals)
✅ Apply for Condonation of Delay
✅ Ensure Correct Filing of Returns to Avoid Additional Penalties
Final Advice
If you have missed filing a TDS return, do not delay further. File it immediately and pay the late fees to minimize the financial burden. If there is a reasonable cause for the delay, you may approach the IT department for penalty relief under Section 271H.
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