Friends Initially, we want to share that there is no such any notification vide which deductor can claim relaxation in deposit of Late Filing Fee of TDS / TCS returns charged by Income Tax Department u/s 234E. The Deductors can request logically to CPC (TDS) for relaxation of Late Filing Fee of TDS / TCS returns.. Complete letter has been prepared in the interest of deductor and available below . Only some fields relating to effected different deductors may be entered in below letter.
Name of Assessee :-
F.Y.( Quarter) :-
Type of Form filed :-
Sub: Application U/s 154 of the Act
With reference to above subject ,We beg to submit that we had filed our TDS quarterly statement for F.Y. ………… Quarter ….. vide Token No. ……………………… on …………... As the due date for filing the return is …………..Therefore your honour levied the penalty U/s 234E of Rs ……….
1) As per the Provisions of Sec. 234E “Amount of late fee @ Rs. 200/- per day shall be paid before delivering a TDS statement”, It means that any late fee should have been deposited just at the time of delivering TDS statement and not later than this. Once the TDS statement has been accepted without late fee, then such late fee cannot be recovered later on, if not collected at the time of delivering TDS statement, by the NSDL (Income Tax department).
2) On the other hand it is also pertinent to note that the law has not made any person responsible, to deposit late fee, in case of default in depositing late fee along with TDS statement, which can be inferred from the provisions of Sec. 204 of the act, which states as under:-
“Sec. 204 of the act has made persons responsible for Sec. 190 to Sec. 203AA and Section 285 this phrase does not cover Section 234E; it means no one is responsible for default U/s 234E”.
Therefore if any late fee is due and not deposited along with the TDS statement no one can be held responsible to deposit it.
3) Sec. 200A of the act also does not permit processing of TDS statement for default in payment of late fee, except any arithmetical error, or incorrect claim, or default in payment of interest, any TDS payable or refundable etc. An assessee cannot be treated in default also U/s 201(1) or 206C (6A) due to non-payment of late fee.
Therefore kindly cancel the demand of late fees as soon as possible.