Effective 1st July 2012, certain amendments in the Finance Bill necessitate that companies file their e-TDS returns on time. Non-filing or late filing of TDS returns attract two penal consequences as per amendment in the Finance Bill 2012-13.
- Earlier U/S 234E late filing of e-TDS return attracted a penalty of Rs. 100/- per day subject to maximum TDS payable. However, this penalty has now been doubled and the defaulter is now liable to pay a penalty of Rs. 200/- per day for every day till it is paid. However:
- The total liability will not exceed the amount that was deducted and due to be paid.
- The penalty fees would have to be paid before the e-TDS statement can be filed.
- U/S 271H a person is liable for penalty under two circumstances:
- For not filing the TDS statement within the prescribed time frame
- For providing incorrect details such as PAN, TDS amount challan etc
- In addition to Section 243E as mentioned above, U/S 271H the deductor will be liable to pay a penalty of Rs, 10,000 which can extend up to Rs, 1 lakh if the deductor fails to file the statement within one year from the date on which it was due to have been filed.