Section 200A was amended
by Finance Bill 2015 with effect from 01.06.2015. Through this amendment in
section 200A of the Income-tax Act 1961 in sub-section (1), for clauses (c) to
(e), the following clauses has been be added with effect from the 1st day of June, 2015
(c ) the fee, if any, shall be computed in accordance with
the provisions of section 234E
Income tax department has been empowered to levy late fee U/s 234E @ Rs. 200/- per day on delayed
filing of TDS Quarterly Statement. So
late fee levied before 01.06.2015 can be waived by the officer and the assessee
for waiver can file a rectification under Section 154 or appeal can be filed for getting the
demand of 234E cancelled.
As clause (c) newly inserted
was effective from 01.06.2015 and prior to 1st June 2015, there was no enabling
provision in the Income Tax Act for raising a demand in respect of levy of fees
under section 234E consequently no late fee under Section 234E is not payable if it pertains
to the period 01.06.2015
(d) First the adjustment of the amount computed
under clause (b) and clause (c) against any amount paid under section 200/201/234E
and any amount paid otherwise by way of tax or interest or fee will be made and
then the sum payable by, or the amount of refund due to, the deductor shall be
determined.
(e) An intimation shall be prepared and sent to
the deductor determining the tax to be payable or the amount of refund due
under clause (d); and (f) the amount of refund due to the deductor in pursuance
of the determination under clause (d) shall be granted to the deductor.
Now ITAT ,Amritsar in the case of Sibia
Healthcare Private Limited Vs. Dy. Commissioner of Income-tax (TDS) dated
09.06.2015, has passed an order on section 234E of Income Tax Act on Levy U/S
234E i.e on late filing of E TDS return
for delay @ Rs.200/- per day admitting
that in the absence of the enabling provision under Section 200A such levy is
not valid so cannot be recovered.
The main points cleared by such Judgment are as
under :
ü the
adjustment in respect of levy of fees under section 234E is beyond the scope of permissible adjustments under
section 200A.
ü The
intimation for processing of TDS Statement is an appealable order under section 246A(a).
ü No such levy could be effected or
recovered in the absence of the enabling
provision under section 200A,.
ü An intimation under section 200A can be passed within
1 year from the end of the Financial Year within which the related TDS Quarterly
Statement is filed, for raising of a
demand or issuing a refund to the tax
deductor.
So in Light of above decision it
has been cleared that Late fee penalty/Fee cannot be imposed
before 01.06.2015
Now caution for intimation under
Section 200A if received for earlier period :
ü The assessee should check
the intimation immediately as received through mail
ü The assessee should give
the Valid E mail ID on Traces site which
is Poped up if intimation is received or is checked by the assessee regularly.
ü For such levy under Section 234E before 01.06.2015 file a
rectification if no intimation received .
ü If such intimation is received then check that
appeal is filed in time so that it is not time barred.
ü Intimation for all TDS
statements filed during Financial Year 14-15 and for Quarter ended 31.03.2015
filed in Financial Year 15-16 should have been passed before 31.03.16 and
31.03.17 respectively.
TDS CPC is sending intimations through mail for the current period
immediately and as well for earlier period also.