Penalty for incorrect information or failure to furnish statements etc. [ Section 271H ] - Income Tax - Ready Reckoner - Income Tax

Penalty for incorrect information or failure to furnish statements etc. [ Section 271H ] This section is applicable for quarterly returns of TDS/ TCS. This section levies a penalty for delay in filing quarterly returns of TDS/ TCS or furnishing incorrect information in the said returns. Section 271H provides that without effecting the provisions of section 234E , a person shall be liable to pay penalty if: (i) he fails to deliver the quarterly returns of TDS/ TCS within the time prescribed or (ii) he furnishes incorrect information in the quarterly returns of TDS/ TCS. The penalty shall be a minimum amount of Rs. 10,000 and it can be extend up to Rs. 1,00,000. The above penalty is mandatory and cannot be waived. Non-Applicability of section 271H This section however provides that notwithstanding the above, no penalty shall be levied for delay in delivering the quarterly returns of TDS/ TCS if such person proves that: after paying the tax deducted or collected along with fees under section 234E and interest under section 201 to the credit of Central Government, Upto 31.03.2025 - he has filed the quarterly returns before the expiry of a period of one year from time prescribed for filing the quarterly return. From 01.04.2025 - he has filed the quarterly returns before the expiry of a period of one Month from time prescribed for filing the quarterly return. The provisions of this section shall apply to a statement referred to in section 200(3) (TDS) or the proviso to section 206C(3) (TCS) which is to be delivered or caused to be delivered for tax deducted at source or tax collected at source, as the case may be, on or after the 1st day of July, 2012. Therefore, if quarterly returns of TDS/ TCS which were to be filed on 15 th July, 2021 are filed up to 15 th July, 2022 and assessee has paid TDS/ TCS and fees under section 234E and interest under section 201 , then there shall be no penalty under section 271H for delay in furnishing of quarterly return. Important Notification Circular Procedure for identification and processing of cases for prosecution under Direct Tax Laws [ Circular No. 24/2019 Dated 09.09.2019 ] The Central Board of Direct Taxes has been issuing guidelines from time to time for streamlining the procedure of identifying and examining the cases for initiating prosecution for offences under Direct Tax Laws. With a view to achieve the objective behind enactment of Chapter XXII of the Income-tax Act, 1961 (the Act), and to remove any doubts on the intent to address serious cases effectively, this circular is issued.