Tds late payment fee u/s 234e

This query is : Resolved

Muthaiah (Querist)
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21 June 2014 Dear Sir,

In Few days before our firm got a notice from CPC - Tds Dept, Towards our FY 2013-14 Q1 etds return is filled by late. So pay Rs 350/- towards interest & Rs 4800/- towards late filling fee u/s 234.

In above i am filled the challan and mention Sec : u/s 234. But the bank staff mistakely made a receipt for Normal TDS payment. In this matter i ask bank manager to change the tds receipt as per my challan. The bank officials says, we can't rectify it. But the bank manager give a dratf for the mistake is made by bank.

What can i do... How to close the issue with CPC - TDS Dept. Any body Help me..

Thanks,
Muthaiah.J
muthu_jm2003@yahoo.co.in

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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21 June 2014 Hon’ble Kerala High Court Stayed the recovery of such fees

The Judgement of the Hon’ble High Court of Kerala has come as a big relief to the tax deductors. This provision had been challenged in the Kerala High Court on the grounds that there is no provision in the Income Tax Act, 1961, which empowers the IT department to recover the penalty for late filing of TDS returns.

The levy in nature of “fee” has been challenged as illegal, arbitrary, unreasonable, invalid and unconstitutional in a writ petition filed by a lower primary school in Kerala.

The Kerala High Court has acknowledged and admitted the writ petition and has granted 2 months stay order to all the proceedings initiated against the petitioner under Section 234E of the Income Tax Act. Also, the standing counsel for the IT Department has taken notice for all the respondents in the writ petition.

Therefore if any late fee is due and not deposited along with the TDS statement, it cannot be recovered later by the IT department.

Infact the same had saved your Rs.4800/-

now you can use that challan or can claim refund from the TDS

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