If a person fails to deliver or caused to be delivered a statement within the time prescribed in section 200(3) or furnishes an incorrect statement, in respect of tax deducted at source on or after 1.07.2012, he shall be liable to pay, by way of penalty a sum which shall not be less than Rs. 10,000/- but which may extend to Rs 1,00,000/-. However, the penalty shall not be levied if the person proves that after paying TDS with the fee and interest, if any, to the credit of Central Government, he had delivered such statement before the expiry of one year from the time prescribed for delivering the statement.
- Section 271H has been inserted to levy penalty in addition to the fees under section 234E
- Section 271 H is applicable in respect of quarterly TDS/ TCS return which is to be submitted on or after July 2012.
- Applicability of 271H in penalty for incorrect information in TDS/ TCS statement.
- Applicability of Sections 234E in respect of fee and penalty for Delay/Default in furnishing TDS/ TCS quarterly statement. If a person fails to deliver TDS/ TCS return within the prescribed time under section 200(3) and/or sec 206(3) he shall be liable to pay, by way of FEE, a sum of Rs. 200 for each day of failure. However the fee amount should not exceed the amount of tax deductible/collectible. With effect from July 1, 2012 it would not be possible to file a belated quarterly TDS/TCS return without payment of fees under 234E
Information Required for Filing Quarterly TDS Return/Statement: At the time of preparing statements of tax deducted, the deductor is required to mandatorily quote
- His tax deduction and collection account number (TAN) in the statement;
- His permanent account number (PAN) in the statement except in the case where the deductor is an office of the Government( including State Government). In case of Government deductors “PANNOTREQD” to be quoted in the e-TDS statement:
- The permanent account number PAN of all deductees;
- Furnish particulars of the tax paid to the Central Government including book identification number or challan identification number, as the case may be.
- Furnish particular of amounts paid or credited on which tax was not deducted in view of the issue of certificate of no deduction of tax u/s 197 by the assessing officer of the payee.
Reference: Penalty for failure to furnish statements, etc.
271H. (1) Without prejudice to the provisions of the Act, a person shall be liable to pay penalty, if, he—
(a) 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) ofsection 206C; or
(b) furnishes incorrect information in the statement which is required to be delivered or caused to be delivered under sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C.
(2) The penalty referred to in sub-section (1) shall be a sum which shall not be less than ten thousand rupees but which may extend to one lakh rupees.
(3) Notwithstanding anything contained in the foregoing provisions of this section, no penalty shall be levied for the failure referred to in clause (a) of sub-section (1), if the person proves that after paying tax deducted or collected along with the fee and interest, if any, to the credit of the Central Government, he had delivered or cause to be delivered the statement referred to in sub-section (3) of section 200 or the proviso to sub-section (3) ofsection 206C before the expiry of a period of one year from the time prescribed for delivering or causing to be delivered such statement.
(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.