Tds return late filing fees
This query is : Resolved
24 April 2018
A party deducted tds for Fy 2007-08 but TDS Return not filed.
but now party wants to file TDS return for the same.
As per 234E there is a late fee for late filing max. upto TDS amount.
So is it possible to first file NIL TDS return to avoid late fee than file revised return for the same.
but now party wants to file TDS return for the same.
As per 234E there is a late fee for late filing max. upto TDS amount.
So is it possible to first file NIL TDS return to avoid late fee than file revised return for the same.
25 April 2018
you talking about FY 2007-08??
25 April 2018
yes it is for 2007-08
25 April 2018
here is the problem. You cannot file nil tds return anymore. So that option is anyway not available for you. also, filing incorrect return is further punishable under 271H.
So instead of finding ways around this, ask your client to pay the due amount along with interest and late fees.
So instead of finding ways around this, ask your client to pay the due amount along with interest and late fees.
25 April 2018
Nil Return declaration can be revised or not?
25 April 2018
that will attract all the things that you wish to avoid including late fees, interest etc
25 April 2018
Late filing fees is sbject to TDS amount limit na. So if NIL declaration filed first no late fee will be there.
then if we revise the return late filing fee should not be there in case of revised return.
then if we revise the return late filing fee should not be there in case of revised return.
28 July 2025
You're raising a clever point — but unfortunately, **this strategy won’t work** the way you’re expecting. Here's why:
---
### 🔴 **Key Facts:**
* **Section 234E** imposes **late filing fees of ₹200 per day** for delay in filing TDS statements, **subject to the total TDS amount**.
* The **late filing fee is mandatory and non-waivable**, once a TDS return is filed **after the due date**.
* **Filing a NIL return and then revising** it to add deductee/challan data **does not bypass** 234E. Here's why:
---
### ❌ **Why the “NIL first, revise later” trick won’t work:**
1. **A NIL return contains no TDS deduction.**
* So when you file it, the system **won’t compute any 234E fees** because TDS amount is zero.
2. However, when you **file a correction/revised return** that **adds the actual TDS deductions**:
* The **system checks the original due date** of the quarterly return vs. the **actual date the revised return is filed**.
* **234E fees will be triggered at that point**, up to the actual TDS amount, **based on the revised submission date**.
3. Additionally, **filing a knowingly incorrect NIL return to avoid penalties** could invite penalty u/s **271H** (for incorrect returns), especially if traced during assessment.
---
### ✅ **Correct Course of Action:**
* File the **correct original return**, even if delayed.
* Be ready to **pay late fees under 234E**, **interest under 201(1A)**, and possibly **penalty under 271H** (though this is at AO's discretion and can be waived for reasonable cause).
* The department is stricter now due to **centralized processing of TDS returns**, so such workaround tactics are generally ineffective.
---
### 📝 Pro Tip:
If your client has **reasonable cause for the delay** (loss of data, legal dispute, death of accountant, etc.), you can apply to the **AO to waive the penalty under 271H**, but **234E fees are mandatory**.
---
Would you like a draft letter for requesting waiver of 271H penalty or help calculating interest and late fees?
---
### 🔴 **Key Facts:**
* **Section 234E** imposes **late filing fees of ₹200 per day** for delay in filing TDS statements, **subject to the total TDS amount**.
* The **late filing fee is mandatory and non-waivable**, once a TDS return is filed **after the due date**.
* **Filing a NIL return and then revising** it to add deductee/challan data **does not bypass** 234E. Here's why:
---
### ❌ **Why the “NIL first, revise later” trick won’t work:**
1. **A NIL return contains no TDS deduction.**
* So when you file it, the system **won’t compute any 234E fees** because TDS amount is zero.
2. However, when you **file a correction/revised return** that **adds the actual TDS deductions**:
* The **system checks the original due date** of the quarterly return vs. the **actual date the revised return is filed**.
* **234E fees will be triggered at that point**, up to the actual TDS amount, **based on the revised submission date**.
3. Additionally, **filing a knowingly incorrect NIL return to avoid penalties** could invite penalty u/s **271H** (for incorrect returns), especially if traced during assessment.
---
### ✅ **Correct Course of Action:**
* File the **correct original return**, even if delayed.
* Be ready to **pay late fees under 234E**, **interest under 201(1A)**, and possibly **penalty under 271H** (though this is at AO's discretion and can be waived for reasonable cause).
* The department is stricter now due to **centralized processing of TDS returns**, so such workaround tactics are generally ineffective.
---
### 📝 Pro Tip:
If your client has **reasonable cause for the delay** (loss of data, legal dispute, death of accountant, etc.), you can apply to the **AO to waive the penalty under 271H**, but **234E fees are mandatory**.
---
Would you like a draft letter for requesting waiver of 271H penalty or help calculating interest and late fees?
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