Income-tax Act, 1961Section 234E
- ₹200 per day of delay in filing TDS/TCS statements
- Capped at the amount of tax deductible/collectible
- Fee to be paid before filing
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 234E
InterestSection 234E → Section 427
Late fee for delay in filing TDS/TCS statements (and SFT)
Section 234E of the old Income-tax Act, 1961 · new section 427 under the Income-tax Act, 2025
New reference Section 427
Income-tax Act, 2025Section 427
- 427(1)–(2): same ₹200 per day, capped at the tax amount
- 427(3): new fee of ₹200 per day, up to ₹1,00,000, for late Statement of Financial Transactions or reportable account
Applies from tax year 2026-27 (from 1 April 2026).
What changed
The Finance Act 2026 substituted section 427 from 1 April 2026: the TDS/TCS late fee is unchanged, and a capped daily fee for late SFT/reportable account statements was added.
Practice notes
- Quarterly TDS statements for tax year 2026-27 onwards are filed under the new provisions.
- Penalty for not filing the statement at all is separate.
Frequently asked
What is the late fee for TDS return under the new Income Tax Act 2025?
₹200 per day under section 427, up to the amount of TDS/TCS.
What is section 234E called in the new Income-tax Act, 2025?
Section 234E of the Income-tax Act, 1961 corresponds to Section 427 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 234E under the new Income Tax Act?
The Finance Act 2026 substituted section 427 from 1 April 2026: the TDS/TCS late fee is unchanged, and a capped daily fee for late SFT/reportable account statements was added.
Is section 234E still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 234E of the 1961 Act. Section 427 of the 2025 Act applies from tax year 2026-27.