Section 234 of the income tax act- legality and validity cha

The legality and validity of section 234 E of the Income Tax Act, 1961 inserted by the Finance Act, 2012 making a person liable to pay, by way of fee, a sum of Rs 200/-for each day's delay in filing the statement ofTax Deducted at Source (TDS) or Tax Collected at Source (TCS) is challenged in the High Court of Kerala. The levy in the nature of 'fee' has been challenged as illegal, arbitrary, unreasonable, invalid and unconstitutional, in a writ petition filed by a Lower Primary School in Kannur.
The Honourable High Court has admitted the writ petition and has stayed all the proceedings initiated against the petitioner under section 234E of the Income Tax Act for a period of two months. The standing counsel for the Income Tax department has taken notice for all the respondents in the writ petition.
arunrajs @

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Wealth Manager

If the deductor is charged penalty amount u/s 234E then this penalty has to be paid to the Income Tax Department using Challan no. 281, and this penalty cannot be waived under any circumstance.

What is Section 234E ?

Section 234E – Levy of Fees:

  • Failure to submit e-TDS Statement on time will result in fees on the deductor.
  • If you delay or forget to file your e-TDS Statement, fees of Rs. 200 per day will be levied on the deductor, as long as TDS Statement is not filed.
  • The levied amount of fee is not supposed to exceed the TDS deductibles.
  • Prior to filing of TDS Statement such fee should be paid and it should be reflected in the TDS Statement.
e.tds return filer

Mr. Anuraj thanks for the news.  I am praying for this news for a very long time.  The reason the Dept. is sending notices only to those who pay TDS in cash and not to those who are paying through Book Adjustment Entry. But your news does not have any dependable reference.wink

Coming to Mihir - I want to know where to enter Col. No. in the RPU the fee paid under 234E. 



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