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Section 234e of income tax act

Amit Kumar Verma (CA Final CS Professional)   (501 Points)

28 December 2012  

Hi friends!!!!

The finance act, 2012 added a new section 234E which specifies for fee of Rs. 200 per day for delay in furnishing of quarterly tds statements and is applicable from 1st July, 2012. Further it has been mentioned that it will not be possible to upload the return without payment of fee u/s 234E.

Now my question is whether this section will be applicable for first quarter of FY 2012-13. As per my reading it is applicable for the first quarter also. But one of my friend has uploaded Form 24Q of first quarter of FY 2012-13 on 20th September, 2012 without payment of any late fee u/s 234E. If it is applicable for first quarter also, then how is it possible?

Thanks.


 13 Replies

CA Gnanika (CA ) (485 Points)
Replied 28 December 2012

It is applicable for the 1st qtr too., but it doesnt restrict filing.

But it is better to pay the penalty & then upload the return., else will get notice from the dept.

 

1 Like

Anand (CA - Assistant General Manager - Taxation)   (1606 Points)
Replied 28 December 2012

Amit,

Subsection 4 of Section 234E is very clear. It states that the provisions of the section shall apply to such ETDS or TCS statement which is to be filed for tax deducted or collected at source, on or after 01st Day of July 2012.

Hence it applies only to tax deducted or collected from 02nd quarter of FY 2012-13.

For more on Indian Income Tax please check https:\\indiataxobserver.wordpress.com

2 Like

kavitha (studying final) (830 Points)
Replied 28 December 2012

234 e is applicable to returns whos due date falls on or after 01.07.2012. so in ur case penalty is applicable...

1 Like

Anand (CA - Assistant General Manager - Taxation)   (1606 Points)
Replied 28 December 2012

Kavitha,

Sub section (4) of Section 234E. It applies only to statements to be filed for taxes deducted w.e.f 01.07.2012. No fee under Section 234E would be applicable in this case

Penalty for delay in filing quarterly returns is dealt with u/s 271H

1 Like

CA PRIKSHIT WADHWA (CHARTERED ACCOUNTANT) (339 Points)
Replied 28 December 2012

Sub section (4) of Section 234E. It applies only to statements to be filed for taxes deducted w.e.f 01.07.2012

So how can Penalty be imposed for tax deducted upto 30-06-2012.

This section Definitely come into Operation from Q2 only.

 

 

 

1 Like

Pulkesh Mehta (Chartered Accountant) (243 Points)
Replied 29 December 2012

Sub section 4 of Sec 234E inserted by Finance Act 2012

The provisions of this section shall apply to a statement referred to in

1.sub-section (3) of section 200 (i.e.TDS) or

2. the proviso to sub-section (3) of section 206C(i.e.TCS) 

-which(Stmt.) is to be delivered or caused to be delivered for TDS or TCS (deducted)

-on or after the 1st day of July, 2012.".

 

Applying above, 01.07.2012 date is for  TDS / TCS,not for date of filling of Qtrly.Stmt. of return of TDS/TCS.

Therefore Section 234 E is applicable on Qtrly Stmt. of TDS/TCS deducted on or after 01.07.2012(i.e II Qtr. of F.Y.2012-13)

Hence no penalty is leviable u/s 234E in above case.

1 Like

CA Manish (Job) (4812 Points)
Replied 29 December 2012

1. Penalty u/s. 272A (2) (k) of the Act.

 

  • Reason: - for late-filing of TDS returns.

 

  • Amount: - 1. Minimum: - Rs 100 per day till the default continues

                    2. Maximum: - amount of TDS deductible.

 

  • No Penalty: - for reasonable cause.

 

  • No penalty will be charged under this section if return pertains to period for the TDS and TCS to be deducted or collected on or after 1.07.2012.

 

2. Fee U/s 234E.

 

  • Reason: - for late-filing of TDS returns.

 

  • Amount: - 1. Minimum: - Rs 200 per day till the default continues

                    2. Maximum: - amount of TDS deductible.

 

  • Penalty under this section will be charged if return pertains to period for the TDS and TCS to be deducted or collected on or after 1.07.2012.
1 Like

director (M.COm.,CA final) (30 Points)
Replied 30 December 2012

so,as per CA Manish Malu, "FEES" takes place in place of "PENALTY"

1 Like

Deepak (to be a chartered accountant)   (141 Points)
Replied 02 January 2013

I agree with kavitha

j.r.kota (proprietor) (76 Points)
Replied 24 September 2013

Dear Sir,

What would be the position with regard to Sect 234E and 234H for tds returns supposed to be filed before 01.07.2012 and are still not filed?

This includes incorrect returns also.

JR Kota

Amisha Nama (chartered accountant) (34 Points)
Replied 28 October 2013

Originally posted by : Amit Kumar Verma

Hi friends!!!!

 

Amisha Nama (chartered accountant) (34 Points)
Replied 28 October 2013

dear sir,

what can waive the penalty of section 234e if in any circumtances to the income tax commissioner ??

please solve my query..

Nikhil Kaushik (Co-founder @ Graviky) (84092 Points)
Replied 28 October 2013

234E is compulsory and cannot be waived off.


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