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Penalty under 234 e

CA Rajnik Galani (prctice) (154 Points)

21 February 2014

Dear Friend

I have to File Tds Return For Finalcial Year 11-12 in this case govt can leavy penalty u/s 234 e ?

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11 Replies

CA SUKSHAM ARORA (CA) (569 Points)
Replied 21 February 2014

ACCORDING TO ME,

YES,

@ RS. 200.00 PER DEFAULTING DAY

1 Like

Ankit (Student) (661 Points)
Replied 21 February 2014

ya govt can levy in this case but u/s 234E its fees not penalty.. Govt can levy penalty u/s 234H..

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 21 February 2014

Download New ITNS Form281 to file the same

NIKKI (ARTICLE) (71 Points)
Replied 22 February 2014

THERE IS NO NEED TO PAY PENALTY

CA Kumar Ajay (Following My Dreams) (228 Points)
Replied 22 February 2014

Do Pay 200 Per Day With A Max. Limit Of TDS Liability

CA.Jaya Shah (self Practice) (29 Points)
Replied 22 February 2014

Penalty u/s 234E Levied only from F.Y.12-13 not before.

Z ( ) (2960 Points)
Replied 22 February 2014

S. 234E wasn't in force at that time (It was inserted by FA 12 is applicable from 1st July 12)

So it wont attract in your case

KRISHNAPRASAD IYER (B.Com , CA Final) (657 Points)
Replied 23 February 2014

It may be noted that an asseessee, namely, Narath Mapila Lower Primary School has filed a writ petition questioning the constitutional validity of section 234E. The Hon. High Court of Kerala while hearing the writ petition granted an interim junction for a period of 2 months vide order dated 18th December 2013. There is likelyhood of Hon. High Court passing an order that the section itself is invalid.

So my dear friends, before asking your client to pay the penalty u/s 234e, just send in a letter to the ITO in TDS ward asking him to wait till the Hon. High court passes an order. If the High court passes an order favoring the assessee, the penalty needn't be paid.

Also note that once you have paid the penalty and High court passes an order favoring the assessee, you wont get the money back.

So my advise is to wait till the High court passes an order.

1 Like

M K U VARMA (PROPRIETOR & CEO) (38 Points)
Replied 23 February 2014

DEAR FRIENDS, RECENTLY, THE HO'NBLE HIGH COURT OF KARNATAKA ALSO STAYED OPERATION OF SEC.234-E. SINCE THE MATTER IS SUBJUDICE, IT ADVISED NOT TO PAY LATE FEE U/S.234-E.

NEXT, I FEEL SEC.234-E IS APPLICABLE W. E. F. 01-07-2012 AND HENCE CAN NOT BE LEVIED TO FY 2011-12.

1 Like