Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025

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An individual deductor is seeking guidance on waiving late filing fees for Q1 Form 144 (previously Form 27Q) due to the transition to the Income-tax Act, 2025. Despite timely TDS deposit, the quarterly return was missed. The user is inquiring about potential waivers, CBDT notifications, and whether the return can be filed without upfront payment of the ₹200-per-day late fee, or if CPC(TDS) might issue a demand later. They are looking for expert advice on procedural options and representations to seek relief.

Rahul

Rahul (Querist)

26 October 2026 Respect Experts,

I am an individual deductor paying monthly residential house rent to an NRI landlord. TDS has been deposited on time under Section 393(2), Sl. No. 17 (Code 1057), corresponding to the earlier Section 195.

However, due to the transition from the Income-tax Act, 1961 to the Income-tax Act, 2025, and the introduction of the new Form 144 replacing Form 27Q, I inadvertently missed filing the Q1 TDS return for Tax Year 2026–27 (April–June 2026), which was due on 31 July 2026.

I would appreciate clarification on the following:

1. Is there any late-filing fee waiver, relaxation or extension for Q1 Form 144 due to the transition to the new Income-tax Act, 2025?

2. Has CBDT issued any notification, circular or transitional relief regarding late filing fees under Section 427 for Tax Year 2026–27?

3. Since the entire TDS was deposited within the prescribed deadlines and only the quarterly statement was missed, is there any provision to waive or avoid the ₹200-per-day late filing fee?

4. Can the Q1 return be filed now without paying the late filing fee, or could CPC(TDS) subsequently raise a demand?

5. If no specific waiver is available, are there any legitimate alternative remedies, procedural options or representations available to seek relief from the late filing fee?

I would sincerely appreciate expert suggestions, practical guidance and recommendations on how best to proceed in this situation while remaining fully compliant. Any experience with similar cases involving the transition to the new Income-tax Act would be particularly helpful.

Thank you in advance for your valuable guidance and time.

Best Regards.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

26 October 2026 Since tax was deposited on time, timely compliance intent is established; however, statutory late fees under Section 427 (₹200/day) are system-calculated. Filing the return typically requires clearing this fee, and relief from automated CPC demands relies entirely on formal administrative representations or specific CBDT transitional relaxation circulars.

Rahul

Rahul (Querist)

26 October 2026 Thank you for your reply.

You mentioned that late filing fees under Section 427 are system-calculated.

Could you please clarify at which stage the system calculates and displays this fee for Form 144 (earlier Form 27Q) under the Income-tax Act, 2025?

Is it calculated during FVU validation, immediately after uploading the FVU ZIP file on the Income Tax portal, or only after submission and subsequent CPC(TDS) processing?

I have reached the Q1 Form 144 upload screen, but no late fee is currently displayed.

I would also appreciate clarification on whether the portal permits submission without upfront payment of the late fee and whether CPC(TDS) may subsequently generate a demand.

Your practical guidance would be greatly appreciated.

Best Regards.

Rahul

Rahul (Querist)

26 October 2026 Apologies, I accidentally selected the "Query Resolved" option while posting my previous reply.

My query is still open, as I am seeking clarification regarding the stage at which the late filing fee under Section 427 is calculated and whether Form 144 can be submitted without upfront payment, with any applicable demand arising later during CPC(TDS) processing.

Thank you for your understanding and assistance.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

27 October 2026 Dear Rahul,

No waiver or extension yet. CBDT hasn’t issued any circular that extends the Q1 Form 144 due date of 31 July 2026 or waives the late fee under Section 427. Paying the TDS on time does not exempt you from the fee.
Fee: ₹200 for each day of delay from 1 August 2026 until you file. The total can’t be more than the TDS amount in the statement.
Filing without the fee: You can file without paying it. The FVU and the upload screen don’t calculate it. CPC(TDS) works it out when it processes the statement and raises a demand on TRACES. You can also pay it upfront as “Fee” on the challan and enter the details in Form 144.
Penalty (Section 461, formerly 271H): It won’t apply if the fee is paid and the statement is filed within one year of the due date.
What to do: File right away, since the fee keeps growing every day, and pay the fee. You can also send a representation to CBDT citing the transition problems. If CBDT gives relief later, you can get the fee reversed through rectification on TRACES.

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