Notice under sec 274 read with section 271h

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Nishant Kumar Sarkar

Nishant Kumar Sarkar (Querist)
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22 February 2017 kindly draft the matter

CA Hariprasad Nayak

CA Hariprasad Nayak (Expert)
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22 February 2017 Dear Nishant,

Penalty under section 271H is applicable where a person fails to file the TDS/TCS return on or before the due dates prescribed. Minimum penalty shall be levied of Rs. 10,000 which can go upto Rs. 1,00,000. Penalty under section 271H will be in addition to
late filing fee prescribed under section 234E.

Apart from delay in filing of TDS/TCS return, section 271H also covers cases of filing incorrect TDS/TCS return. Therefore, please check under which scenario penalty is proposed.

No penalty will be levied under section 271H for thefailure to file the TDS/TCS return, if the person proves that after paying tax deducted/collected by him, along with the fee and interest (if any), he has filed the TDS/TCS return before the expiry of a period of one year from the due date of filing the TDS/TCS return.

Therefore, to avoid the penalty make sure the following are met-
a. You have paid the taxes along with the applicable interest and fees
b. Returns are filed atleast now i.e before expiry of one year from the due date.

It should be noted that the above relaxation is applicable only in case of penalty levied under section 271H for the delay in filing of TDS/TCS return and not for filing incorrect TDS/TCS return.

Hope this clarifies.

Regards,
CA Hariprasad Nayak

CA Hariprasad Nayak

CA Hariprasad Nayak (Expert)
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