On filing the return system would credit the payee's account & he would be eligible to get credit for the same. So if return not filed would create an hassle for the innocent payee, so a penalty of Rs. 200/- per day.

1% interest charged is because you have not deducted tds which should have been deducted by you & deposited timely, thus causing loss to revenue. & 1.5% interest is charged because you have deducted tds & not deposited timely, thus making defalcation of govt. dues

Isn't that 1.5%p.m.  very less when compared to 200 per day which is charged for not giving information on time , where you are neither causing a loss to Govt. renenue nor defalcaing Govt. dues

Dear Sir

234E is not a penalty but late fees for the assessees who are in default in EFILING the statement within the due date.

Option - To avoid  File your return within  due date  

How we can waive the penalty under section 234E ?

 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. So nil TDS return is not mandatory (exception u/s 24Q of the 4th qtr) .

Kidly see the attachement about waive 234E

Rs. 1800/- charged on late filing of ETDS return for Q1, FY 2013-14.  In TDS 281 challan, which code either 200 or 400 has to select.  Kindly confirm.

Thanks

Suryanarayana