LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

234 e

Pradip Srinivasan (CA Final) (869 Points)

17 January 2014

hi,

My client is govt deductors. 24G is filed by Treasury. They filed it late, due to which TDS Statements were also filed late. Now 234E interest is demanded claiming 76000rs. Is there any possibility of reducing or rectfying it, as the delay caused was not due to client, but with the treasury.

Reply
Follow
Share

3 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 17 January 2014

Late filing of 24G won't be a defence against penalty u/s 234E. The penalty is Rs. 200/- per day but won't exceed the TDS amount. So why have they demanded 76,000/- ?

Pradip Srinivasan (CA Final) (869 Points)
Replied 17 January 2014

But until 24G is filed by Treasury, i can't file TDS Statement. Treasury has delayed for more than six months and filed 24G. Rs 76000 is for 3 quarters. That 6 months delay has caused 234E. How to proceed further?

Mihir (Wealth Manager) (5293 Points)
Replied 17 January 2014

There are lot of people who are complaining about this new rule. But ITO has made it clear that this penalty cannot be waived off. And in this case, 3 quarters is a very long period. The rule also says that if the delay is over a year, then the penalty may even reach 100,000/-. If there is a genuine reason for delay, then one may apply to CIT(appeal). But chances of success is very slim.