Penalties Section 271H — Penalty for Late TDS/TCS Return (with s.234E companion)
Section 271H — Penalty for Late TDS/TCS Return (with s.234E companion)
Income Tax Act 1961 — 271H
Discretionary penalty of ₹10,000 to ₹1,00,000 for filing a TDS/TCS return late or with inaccurate particulars — over and above the s.234E late fee.
The Penalty
₹10,000 minimum, ₹1,00,000 maximum
- Cap
- ₹1,00,000
- Calculation base
- Statutory band, not a per-day formula
- Period
- One-time penalty per default; no per-day escalation.
When does this apply?
TDS/TCS return filed after due date OR filed with incorrect PAN / incorrect challan / incorrect TDS amount details.
Calculate this amount
This estimate applies only the rate and caps published in the authored rule for this page.
₹0
Worked examples
| Scenario | Calculation | Result |
|---|---|---|
| Return filed 6 months late — no proviso relief claimed | AO can levy ₹10,000 to ₹1,00,000 | ₹10,000 |
| Multiple defective returns — AO levies at higher end | Up to ₹1,00,000 per default | ₹1,00,000 |
How it is levied
AO issues show-cause notice; assessee can invoke the s.271H(3) proviso — no penalty if TDS/TCS is deposited with interest and fee, and the return is filed within one year of the due date.
⚠ VERIFY
Confirm that s.271H(3) proviso relief still exists in current form and that the one-year cure period from the due date has not been amended by a Finance Act.