₹200 per day is the late-filing fee under Section 234E of the Income-tax Act, 1961 for every day a TDS return — Form 26Q, 24Q or 27Q — remains unfiled after its due date, capped at the total amount of tax deductible in that statement. The fee is mandatory, self-computed on the income tax portal, and cannot be waived for reasonable cause. It is a different charge from the ₹10,000 to ₹1,00,000 penalty under Section 271H, which applies to non-filing or to filing a statement with incorrect particulars.
New w.e.f. 01-06-2015: Section 234E made the ₹200-per-day late-filing fee mandatory and non-waivable — the fee is automatically computed on the TDS portal and cannot be waived for reasonable cause.
What the law actually requires
Section 234E was inserted by the Finance Act, 2015 with effect from 1 June 2015. It charges a fee for "failure to furnish" a TDS or TCS statement within the time prescribed. The fee is payable by the person required to furnish the statement — the deductor — for every day of delay from the due date until the date the statement is actually furnished.
The cap and what it means
The fee cannot exceed the total TDS in the statement. Two consequences follow:
- A statement with substantial TDS (say ₹5 lakh) pays the full ₹200-per-day amount, because the cap is far above it.
- A nil-TDS statement filed late carries a cap of ₹0 — the formula still applies, but the fee is effectively nothing because there is no tax deductible to cap it. The statement must still be filed; a nil return is a filing obligation, not an option.
Calculating the fee
Fee = number of days late × ₹200, subject to the cap.
The days are counted from the day after the due date to the day of filing. Part days count as full days: a statement due 31 July filed 1 August is one day late, not zero.
Worked example: Form 26Q for Q4 filed late
Greenline Agro Pvt Ltd's Q4 (January–March) TDS was ₹1,20,000. The Q4 Form 26Q was due 31 May 2026 but was filed on 15 July 2026.
If the same Q4 statement had carried only ₹5,000 of TDS, the fee would be capped at ₹5,000, not ₹9,000.
234E is not the only exposure
Section 234E sits alongside two other charges that deductor defaults trigger:
The three are cumulative. A company that files its 26Q 45 days late, deposited late, and reported a wrong PAN for a vendor can owe 234E fee, 201(1A) interest, and face a 271H penalty demand.
Practical implications
- There is no condonation. Section 234E explicitly overrides any contrary provision and admits no waiver for reasonable cause. Planning around it means filing on time, not appealing the fee.
- The portal computes it for you. The fee is calculated automatically when the statement is uploaded. There is no negotiation and no officer to persuade.
- Filing late is usually a symptom. Late statements correlate with late deposits, which carry their own 1.5%-per-month interest. Fix the deposit cycle first; the return then files itself on time.
- Four statements a year, four deadlines. The fee is per statement. A company that files all four quarterly 26Q forms one month late pays ₹200 × 30 × 4 = ₹24,000 in fees, not ₹6,000 — the per-statement nature multiplies the cost.
- Correct statements still expose old defaults. A revised 26Q filed late for a prior quarter still carries the 234E fee for that quarter. Revision corrects the PAN; it does not backdate the filing date.
Step-by-step: when you discover a late statement
- Identify which statement is late. The fee is per statement (Form 24Q, 26Q, 27Q, 27EQ), so a year of arrears means isolating each quarter and each form separately.
- Fix the due date and the filing date. Count the days from the day after the due date to the day of filing. Part days count as full days.
- Compute ₹200 per day and apply the cap. Cap the fee at the total TDS in that statement. A statement with more TDS than the ₹200-a-day total pays the full fee; a small statement is capped.
- Pay the fee through the portal. The 234E fee is collected as part of the filing process — the portal computes it and the payment is made online before the statement is accepted.
- Deposit the underlying TDS if that is also pending. Late deposit carries its own 1.5%-per-month interest under Section 201(1A); filing the return does not cure a late deposit.
- Reconcile the statement against 26AS. Once filed, confirm every deductee's credit appears in their Form 26AS. A statement filed but with wrong PANs creates a fresh 271H exposure.
- Fix the process, not just the quarter. A late statement is usually a symptom of a deposit process that runs behind. Move the deposit to the 7th of the month and the return files itself on time.
FAQ
How much is the 234E fee?
₹200 per day for every day the TDS statement is late, capped at the total TDS in the statement. A nil-TDS statement attracts no fee but must still be filed.
Can the 234E fee be waived?
No. Section 234E admits no waiver for reasonable cause and overrides contrary provisions. It is automatically computed on the portal.
What are the 26Q due dates?
31 July (Q1), 31 October (Q2), 31 January (Q3) and 31 May (Q4).
Is 234E the same as the 271H penalty?
No. 234E is a per-day fee for late filing. 271H is a ₹10,000–₹1,00,000 penalty for non-filing or filing an incorrect statement (wrong PANs, wrong section codes).
Our Q4 26Q had ₹3,000 TDS and was filed 30 days late. What do we owe?
₹200 × 30 = ₹6,000, but capped at the ₹3,000 TDS in the statement — so ₹3,000. The cap saves you from paying more than the tax in the statement.
Do we pay 234E even if the delay was the consultant's fault?
Yes. The fee attaches to the deductor's obligation to furnish the statement on time. Your contract with the consultant may recover it, but the department collects from you.
Sources
- Section 234E, Income-tax Act 1961 (inserted by Finance Act 2015, w.e.f. 01-06-2015)
- Section 271H (penalty for non-filing/incorrect filing); Section 201(1A) (interest)
- Rule 31A, Income-tax Rules 1962 (statement forms and due dates)
Use the compliance calendar to never miss a TDS statement deadline. For a TDS compliance audit of your company, visit pvtltd.co.
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