Is the penalty under the name of "FEE" levied by IT department under section 234E justified ? The deductors are serving as tax collection points to government . If one looks at it generally, it is the government's payment, which the deductor is collecting and depositing to the government. Even after that in many bona fide cases, heavy penalties are being levied using the new system of TRACES ranging from period of 2012-13 to present.
Government should do something in this regard and a mechanism is needed to improve these situations where some remedy or hearing is available at Local TDS officer level.
Please share your views.
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