Section 234e - provide some relief !

Penalty under the name of "FEE" levied by IT department under section 234E is not justified that is why stay orders has been obtained and contitutional validity of leviying such fee under Income Tax Act has been questioned.

You have rightly ponted out that it is the government's payment, which the deductor is collecting and depositing to the government.

Deducting the correct amount and depositing in to the bank and filing returns and issuing form 16, much work is involved.


 

Originally posted by : SEETHARAMAN
	Penalty under the name of "FEE" levied by IT department under section 234E is not justified that is why stay orders has been obtained and contitutional validity of leviying such fee under Income Tax Act has been questioned. You have rightly ponted out that it is the government's payment, which the deductor is collecting and depositing to the government. Deducting the correct amount and depositing in to the bank and filing returns and issuing form 16, much work is involved.

Thanks SEETHARAMAN for opening the discussion board.

I am aware of the litigations going on in the appeallates and tribunals regarding this matter.But everyone cannot afford litigation specially where the amount of penaly is not so high. Later on if it is declared constitutionally invalid, then what is the government going to do with the sum already deposited by the deductors in fear of department's notice. It shall be unjustice to cases where delays were due to bonafide reasons on the part of deductors.