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Penalty & Fees for Late Filing of TDS return

If you are the one who has not filed the TDS statement or return on time, then it’s time to rush as Finance Minister has made late filing of TDS return costly and penalty & fees will also be imposed if TDS statement is not filed or incorrect information has been furnished in the statement.

Levy of Fees u/s 234E

Under the newly inserted section, if a person (deductor) fails to deliver the TDS statement or TDS return in the time prescribed, then the person shall be liable to pay a fine of Rs. 200 for everyday till the default continues. However, the total amount of fee shall not exceed the total amount of tax deductible.

Penalty for Late or Non-Filing of TDS return or Statement u/s 271H

A person shall be liable to pay penalty if –

  • TDS statement has not been filed within the prescribed time limit, or
  • Incorrect information has been furnished to be delivered.

Amount of Penalty

The penalty to be paid shall be a sum which should not be less than Rs. 10000 but can be extended to Rs. 100000.

Penalty will not be levied if the person proves that after paying tax deducted or collected along with the fees and interest, if any, to the credit of the Central Government, he had delivered or cause to be delivered the statement before the expiry of 1 year from the time prescribed for delivering or causing to be delivered such statement.

Effective Date

The provision related to penalty & late fees for non-filing or late filing of TDS return which has been newly inserted sections shall be effective from 1st July, 2012.


Alok Patnia founded, an expert in tax advisory & compliance. He is a Chartered Accountant having prior exposure with Ernst & Young & KPMG.

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