Tds return late filing fees

Save Share

This query is : Resolved

Punit Agrawal (Querist)

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.

Nikhil Kaushik

Nikhil Kaushik (Expert)

25 April 2018 you talking about FY 2007-08??

Punit Agrawal

Punit Agrawal (Querist)

25 April 2018 yes it is for 2007-08

Nikhil Kaushik

Nikhil Kaushik (Expert)

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.

Punit Agrawal

Punit Agrawal (Querist)

25 April 2018 Nil Return declaration can be revised or not?

Nikhil Kaushik

Nikhil Kaushik (Expert)

25 April 2018 that will attract all the things that you wish to avoid including late fees, interest etc

Punit Agrawal

Punit Agrawal (Querist)

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.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

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?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now