For non-payment of TDS deducted, interest is levied @ 1%per month but just for non-filing of TDS return, even though the amount is paid on time, a penalty of Rs.200 per day or TDS amount whichever is lower is charged u/s 234E. Even after paying the money to the Government that is collected on it"s behalf (which originally is the task of Government) how can a penalty of such an amount be levied. Isn"t this QUESTIONABLE?

Even in the case of late filing of late income tax return, there is consequential penalty in form of interest u/s 234A  only if there was tax due as per return. 

But in this case, even though we have paid amount on time , do Government have a right to charge penalty of such an amount just for non filing of return on time?

Please share your views.