20 June 2021
I purchased a property in Mumbai on 31 December 2020 with an agreement value of 1.7cr. In all I paid approximately 43.75 lakhs till February 2021. TDS @0.75% was approximately 33000. There was a delay in payment of the TDS amount. I got a notification from the Income Tax department u/s 200A for interest on late payment and late filing fee u/s 234E which is approximately 10,000. My Question:
1. Is there a way I can get a waiver of the late fee? 2. Was TDS applicable to me in the first place in FY 2020-2021 (as I understand that TDS is applicable u/s 194-IA only if payment exceeds 50 lakhs in a financial year? 3. What are my options to reverse the late filing fee
22 June 2021
Since you have received a notice from the income tax department to pay the taxes as well as the late fee/penalty as per their own version/calculation, you may have to first issue a reply notice either by yourself or through an advocate who practice taxation laws denying their allegations. You may raise the issues that you rely upon now especially the reason that you are not liable to pay the tax or the penalty on the basis of the provisions of law that you believe would be appropriate.
As per section 234E, where a person fails to file the TDS/TCS return on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. The amount of late fees shall not exceed the amount of TDS. Late filing fee u/s 234E is a statutory provision and it cannot be waived. Therefore, deductors are advised to file TDS statements in time to avoid it.