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
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.
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. Tax year 2026-27 onward: no penalty if TDS/TCS is deposited with fee and interest and the statement is delivered before the expiry of one month from the due time — s.461(2), Income-tax Act 2025. Tax years before 1 Apr 2026: s.271H(3) proviso, Income-tax Act 1961 — return filed within one year of the due date.
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. For tax year 2026-27 onward the cure window is one month (s.461(2)(b), ITA 2025), not one year.