Section 234E Income Tax Act
[ Section 234E of Income Tax Act Inserted by the Finance Act, 2012, w.e.f. 1-7-2012 explains Fee for default in furnishing statements. ]
1[G.—Levy of fee in certain cases ]
Fee for default in furnishing statements.
234E. (1) Without prejudice to the provisions of the Act, where a person 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) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues.
(2) The amount of fee referred to in sub-section (1) shall not exceed the amount of tax deductible or collectible, as the case may be.
(3) The amount of fee referred to in sub-section (1) shall be paid before delivering or causing to be delivered a statement in accordance with sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C.
(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.]
Notes on Section 234E Income Tax Act
Section 234E of Income tax for Govt Deductor
PRESS RELEASE [F. NO. 275/27/2013-IT(B)], DATED 4-3-2014
The Central Board of Direct Taxes has ex-post facto, extended the due date of filing of the TDS/TCS statement prescribed under section 200(3)/206C(3) of the Income tax Act, 1961 read with rule 31A/31AA of the Income-tax Rules, 1962 to 31.03.2014, for a Government deductor mapped to a valid Accounts Officers Identification Number. This extension is with respect to TDS/TCS statements for FY 2012-13 ( 2nd to 4th Quarter) and FY 2013-14 (1st to 3rd Quarter).
2. This is in response to several petitions from Government deductors/collectors, regarding charging of fee u/s 234E of the Income-tax Act for delay in filing of TDS/TCS statements. It was found that a major reason for such delay was attributable to late furnishing of the Book Identification Number by the Principal Accounts Officers (PAO)/District Treasury Office (DTO)/Cheque Drawing and Disbursing Office (CDDO) which was stabilized during ths financial year only. Fee u/s 234E is mandatory and therefore despite the reason that the delay was attributable to reasons beyond their control, fee was levied in the case of several Government deductors. The current extension of the due date of filing of TDS/TCS statements mitigates the effect of such difficulties faced by such deductors. However, any fee already paid by a Government deductor will not be refunded.
3. This extension is a one time exception in view of the special circumstances.
CIRCULAR NO.1/2015 [F.NO.142/13/2014-TPL], DATED 21-1-2015
FINANCE (NO.2) ACT, 2014 – EXPLANATORY NOTES TO THE PROVISIONS OF SAID ACT
Enabling CBDT to relax provisions relating to levy of fee under section 234E of the Income-tax Act:
38.1 As per the existing provisions of the Income-tax Act, a deductor/collector is required to furnish periodical tax deducted at source (TDS)/tax collected at source (TCS) statements (quarterly) containing the details of deduction/collection of tax made during the quarter by the prescribed due date. Delay in furnishing of TDS/TCS statement results in delay in granting of credit of TDS/TCS to the deductee/collectee and consequently leads to delay in issue of refunds to the deductee/collectee or raising of infructuous demand against the deductee/collectee.
38.2 In order to provide effective deterrence against delay in furnishing of TDS/TCS statement, the Finance Act, 2012 inserted section 234E in the Income-tax Act to provide for levy of fee of Rs.200 per day for late furnishing of TDS/TCS statement from the due date of furnishing of TDS/TCS statement to the date of furnishing of TDS/TCS statement. The levy of fee under section 234E of the Income-tax Act has proved to be an effective tool in improving the compliance in respect of timely submission of TDS/TCS statement by the deductor/collector. However, the levy of fee under section 234E of the Income-tax Act could not be waived / reduced even in the cases where the delay in filing of TDS/TCS statement was due to circumstances beyond the control of the deductor/collector.
38.3 For removing the genuine hardship faced by the deductors/collectors due to levy of fee mandated by the section 234E of the Income-tax Act, section 119 (2)(a) of the Income-tax Act has been amended to enable the CBDT to relax the provisions of the section 234E of the Income-tax Act in suitable cases.
38.4 Applicability:—This amendment takes effect from the 1st October, 2014.
CBDT Letter for Section 234E of Income tax
ETTER F.NO.275/27/2013-IT(B), DATED 2-8-2016
The Board is examining the desirability and expediency of prescribing situation/circumstances under which levy of fee under section 234E may cause genuine hardship to the taxpayers, so as to prescribe guidelines for waiver of such fees by virtue of the powers of the Board under section 119(2)(a) of the Income-tax Act, 1961.
2. In this connection, I am directed to request you to kindly forward your suggestions and recommendations for conditions/circumstances which justify waiver of fee under section 234E for an assessee or a class of assessees. These may kindly be furnished by 31-8-2016.
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