Section 271H of the Income Tax Act, 1961

Introduction 

The TDS/TCS return, which is the statement of tax deducted or collected at source, must be submitted within the deadlines specified. In case of failure to do so, a penalty is imposed under Section 271H, and the Assessing Officer may order to pay a fine in accordance with 271H.  

Penalty for Failure under Section 271H  

Section 271H addresses instances for a penalty as: 

1. Failure to deliver or submit quarterly TDS or TCS returns before the specified date. 
2. Delivers incorrect information in the TDS/TCS return filing

If the following criteria are met, there will be no penalty under section 271H (a) for filing a TDS/TCS return late: 

• The TDS/TCD return is submitted before the period of one year following the deadline set forth in this regard. 

Note: It should be noted that the above relaxation is applicable only in the case of a penalty levied under section 271H for the delay in filing the TDS/TCS return and not in the case of filing an incorrect TDS/TCS statement. 

Amount of Penalty under Section 271H 

The minimum fine that can be levied is Rs. 10,000, while the maximum fine that can be levied is Rs. 1,00,000. Section 271H’s penalty must be paid in addition to the late filing fees specified in Section 234E. 

Implementation of the Income Tax Act’s Section 271H Penalty Provisions  

1. The Deductor fails to submit the TDS return by the deadline. 

1. The Collector misses the deadline for submitting the TCS return. 

1. When submitting the TDS return, the Deductor provides inaccurate information. 

1. When filing the TCS return, the Collector provides false information.  

Anyone who violates any of the rules will be required to pay the fine specified in section 271H. 

Deadlines for TDS and TCS submission 

TDS Return Due Dates 

1. For Q1 (April to June) – 31st July of the financial year
2. For Q2 (July to September) – 31st October of the financial year
3. For Q3 (October to December) – 31st January of the financial year
4. For Q4 (January to March) – 31st May of the financial year immediately following the financial year in which a deduction is made.

TCS Return Due Dates 

1. For Q1 (April to June) – 15th July of the financial year
2. For Q2 (July to September) – 15th October of the financial year
3. For Q3 (October to December) – 15th January of the financial year
4. For Q4 (January to March) – 15th May of the financial year immediately following the financial year in which the collection is made.

Failure to file a TDS/TCS return or file them within the required dates will result in late filing costs under Section 234E. This is in addition to which they are also subject to Section 271H penalties. 

The taxpayer is exempt from Penalty – Reasonable Cause 

• Section 273B also grants immunity from punishment in justified situations. In accordance with section 273B, if the taxpayer can show that there was a legitimate basis for the failure, there won’t be a penalty levied under section 271H.  

Conclusion 

In conclusion, it is important for taxpayers to file their TDS/TCS statements in a timely manner to avoid any late filing fees and penalties. The consequences of failing to furnish or delay the filing of TDS/TCS statements can result in significant financial repercussions. Some of them include interest charges, penalties, and even legal action. As such, taxpayers should ensure that they are aware of the due dates for filing TDS/TCS statements and take the necessary steps to file them on time to avoid any unnecessary fees and penalties. By staying compliant with tax regulations, taxpayers can avoid any unnecessary financial stress and maintain good standing with the tax authorities. 

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