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Started by cankgoyal, September 13, 2013, 11:19:34 AM

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Whether Late Fees for delay in furnishing of TDS Statement u/s 234E of the Income Tax Act, 1961 is constitutionally valid.

Where there is already much penal provision on same issue like:

1.   Penalty u/s 271A(2)(k) for failure to file quarterly statement within the specified time. Rs 100 for every day of default.

2.   Penalty u/s 271H for not furnishing TDS Statement from Rs. 10000/- to Rs. 100000/-

3.   Penalty u/s 271C for failure to deduct the TDS, a sum equal to amount of tax failed to deduct.

4.   Penalty u/s 221 for not deducting the whole or part of the tax or after not collecting fails to deposit.

5.   Rigorous imprisonment u/s 276B for failure to pay the tax upto 7 years.

There are two penal provision already exist for failure to file tds statement and now one more levied in the name of late fees for not filing tds returns, whether it is constitutionally valid ?

For One and same crime (not filing of tds returns) can department penalize many fold to the assessee.   

There is no term of LATE FEES in whole Income Tax Act except this newly section insert. 


EVEN, There are other provisions under income tax act, which require filing of statement/returns but there is no such late fees concept.

i.e. Income tax returns u/s 139
      Annual Information Return
      Wealth Tax Return
      Statement of declaration of form 60/61


234A for late filing of return
penalty for filing return after one year
Similar provisons in wealth tax
penalty is also there for late filing of AIR


right there is penalty for late filing of return

but my question  is that for one defualt ( Late filing of TDS Return) can there be penalty imposed together in different section of the act, is it constitutional
1. section 234E Rs 200/- per day
2. Section 271H Rs 10000/- to rs. 100000/-

3 sec 271A(2)(k) Rs. 100- 200 per day




Thanks Manoj ji

but still question arise

1.There is no penal provison in the name of late fees in Income TAX Act for other type of returns or obligations then why under this chapter when the liablity of the deductor is not direct but vicriours nature.

2.Whether it is justifed to levy statutory late fees,  when TDS is deposited in time or with interest but only file delay return due to valid reasons.
Is it not very hard and it should be depend on reasonable cause theory.

3. when there is penalty provison also u/s 271H  for not filing or delay filing

narayana k r

From 1-7-2012, there is no penalty u/s 272A(2)(k) for late filing of TDS statements.

Penalty u/s 271H ( 10000 to 0ne lakh) is attracted  for the cases of delay of more than one year from due date for furnishing TDS statements

221 penalty is for not depositing tax( including TDS)

271C penalty is for not making TDS

276B prosecution is for not depositing TDS

So, fee u/s 234E does not flash with any other penal provision. hence in my view it is valid.
such tough meassures are needed to enforce deductors to file TDS statements within time, as it they needed for allowing TDS credit to payees.

krnarayana, banaglore