Section 234E of the Income Tax Act

Income-tax Act, 2025: s.427

Section 234E of the Income-tax Act, 1961 corresponds to section 427 (Fee for default in furnishing statements) of the Income-tax Act, 2025.

Read section 427 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 234E is Fatehraj Singhvi v. UOI (73 Taxmann.com 252), cited in 1,778 of the 4,792 judgments on BharatTax that turn on this section.

Leading authorities on Section 234E

Fatehraj Singhvi v. UOI
73 Taxmann.com 252 · 2016 · High Court
1,778
citing judgments

Late fees under section 234E are not applicable for periods prior to June 1, 2015, as the amendment to section 200A inserting clause (c) was effective from that date.

Kourani v. Union OF India
83 Taxmann.com 137 · 2017 · High Court
1,708
citing judgments

The fee under Section 234E for late filing of TDS/TCS statements cannot be levied retrospectively by processing an intimation under Section 200A for defaults occurring before the amendment allowing such processing.

Fateh Raj Singhvi & Ors. v. UOI
289 CTR 602 · 2016 · High Court
844
citing judgments

A fee under Section 234E cannot be levied or adjusted in an intimation under Section 200A for TDS statements pertaining to periods prior to June 1, 2015, as the enabling amendment to Section 200A(1)(c) came into effect only from that date.

Rashmikant Kundalia v. Union of India
54 Taxmann.com 200 · 2015 · High Court
702
citing judgments

Section 234E, levying late fees for delayed filing of TDS statements under section 200(3), is constitutionally valid and constitutes a compensatory fee, not a punitive penalty. Before treating any person as an assessee-in-default, an opportunity of being heard must be provided.

Olari Little Flower Kuries (P.) Ltd. v. UOI
440 ITR 26 · 2022 · High Court
614
citing judgments

The fee under Section 234E of the Income-tax Act cannot be levied for defaults in filing TDS statements committed prior to June 1, 2015, as the provision for its levy became effective only from that date.

Gajanan Constructions v. DCIT
74 Taxmann.com 6 · 2016 · ITAT
465
citing judgments

Late fees under section 234E can only be levied prospectively from June 1, 2015. Levying late fees for periods prior to this date is not permissible.

Dundlod Shikshan Sansthan v. Union of India
63 Taxmann.com 243 · 2015 · High Court
397
citing judgments

The imposition of fees for late filing of TDS/TCS returns prior to the Finance Act, 2015 amendments was not illegal, and the Rajasthan High Court found no justification to interfere with such compensatory fees.

Jiji Varghese v. ITO(TDS) & Ors.
443 ITR 267 · 2022 · High Court
220
citing judgments

Section 234E fee cannot be imposed for periods prior to June 1, 2015. This applies even when the processing of the return under Section 200A(c) occurred before that date.

Sree Narayana Guru Smaraka Sangam Upper Primary School v. Union of India and Others
392 ITR 457 · 2017 · High Court
217
citing judgments
Medical Superintendent Rural Hospital, DOBI BK v. DCIT
100 Taxmann.com 78 · 2018 · ITAT
190
citing judgments

Late fee levied under section 234E for filing TDS returns prior to June 1, 2015, is invalid. This is because the TDS return was filed before the effective date of the relevant provisions for levying such late fees.

Judgments on Section 234E

Anukool Furniture Pvt. Ltd., Ahmedabad vs. ACIT, CPC -TDS, Ghaziabad

In the result, the appeal of the assessee is dismissed

ITA 539/AHD/2019[2015-16]Status: DisposedITAT Ahmedabad15 Nov 2021AY 2015-16

Bench: Shri Rajpal Yadav & Shri Waseem Ahmedassessment Years : 2015-16 Anukool Furniture Pvt Ltd Acit, B-12, Doctor House, Nr. Parimal Vs Cpc-Tds, Railway Crossing, Ellisbridge, Ghaziabad Ahmedabad-380006 Pan : Aabca 6053 F अपीलाथ"/ (Appellant) अपीलाथ" "त् यथ" "त् यथ"/ (Respondent) अपीलाथ" अपीलाथ" "त् "त् यथ" यथ" Assessee By : Shri Bharat Shah, Ar Revenue By : Shri R.R. Makwana, Sr Dr सुनवाई क" तारीख/Date Of Hearing : 15/11/2021 घोषणा क" तारीख /Date Of Pronouncement: 17/11/2021 आदेश/O R D E R आदेश आदेश आदेश Per Rajpal Yadav: The Assessee Is In Appeal Before The Tribunal Against The Order Of The Learned Commissioner Of Income-Tax (Appeals)-8, Ahmedabad [“Cit(A) In Short] Dated 25Th January 2019 Passed For Assessment Year 2015-16. 2. The Solitary Grievance Of The Assessee Is That The Learned Cit(A) Has Erred In Confirming The Penalty Of Rs.74,000/- Which Was Imposed Under Section 234E Of The Income Tax Act, 1961. 3. With The Assistance Of The Learned Representatives, We Have Gone Through The Record Carefully. It Emerges Out From The Record That The Assessee Failed To Submit Its Tds Return Well In Time During The Accounting Period Relevant To The Assessment Year 2015-16. Therefore, A Penalty Under Section 234E Of The Act Amounting To Rs.74,000/- Was Imposed Upon The Assessee. Anukool Furniture Pvt Ltd Vs. Acit Ay : 2015-16 2

For Appellant: Shri Bharat Shah, ARFor Respondent: Shri R.R. Makwana, Sr DR
Section 154Section 200ASection 234E