Section 234E → Section 273
Fee for default in furnishing TDS/TCS statements
Quick Answer
Section 234E of the Income Tax Act, 1961 (Fee for default in furnishing TDS/TCS statements) corresponds to Section 273 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 234E
Section 234E of the 1961 Act sets out the rules on fee for default in furnishing TDS/TCS statements. A flat fee of Rs. 200 per day for late filing of TDS returns (Form 24Q, 26Q).
The new code maps this to Section 273: the provision is retained and renumbered as Section 273 of the Income-tax Act, 2025, applying from 1st April 2026. Retained. Fee cannot exceed the total amount of TDS/TCS to be deducted.
On the ground, changes to Section 234E carry a Medium impact. Operational cost for late payroll processing.
Sec 234E
Provision Summary
A flat fee of Rs. 200 per day for late filing of TDS returns (Form 24Q, 26Q).
Sec 273
Provision Summary
Retained. Fee cannot exceed the total amount of TDS/TCS to be deducted.
Key Changes & Highlights
- Now strictly enforced through the TRACES portal before accepting the TDS return.
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Frequently Asked Questions
What does Section 234E of the Income Tax Act 1961 deal with?
Section 234E of the Income Tax Act, 1961 covers fee for default in furnishing TDS/TCS statements. A flat fee of Rs. 200 per day for late filing of TDS returns (Form 24Q, 26Q).
Where does Section 234E of the ITA 1961 go under the Income-tax Act, 2025?
Section 234E of the Income Tax Act, 1961 maps to Section 273 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Fee cannot exceed the total amount of TDS/TCS to be deducted.
Why does the change to Section 234E matter for taxpayers?
The transition impact for Section 234E is rated Medium. Operational cost for late payroll processing.
What are the key changes to Section 234E under the Income-tax Act, 2025?
Now strictly enforced through the TRACES portal before accepting the TDS return. These points are specific to Section 234E (Fee for default in furnishing TDS/TCS statements).
Disclaimer: This mapping of Section 234E (Fee for default in furnishing TDS/TCS statements) to Section 273 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 234E is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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