Section 234E of Income Tax Act for AY 2023-24

Section 234E of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Fee for default in furnishing statements.

Amended and updated notes on section 234E of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Fee for default in furnishing statements.

Chapter XVII (Sections 190 to 234G) of the Income Tax Act 1961 deals with the provisions related to collection and recovery of tax. Section 234E of IT Act 1961 provides for Fee for default in furnishing statements.

Recently, we have discussed in detail section 234D (Interest on excess refund) of IT Act 1961. Today, we learn the provisions of section 234E of Income-tax Act 1961. The amended provision of section 234E is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 234E of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section-234E: Fee for default in furnishing statements

Section 234E(1) of Income Tax Act

Without prejudice to the provisions of the Act, where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues.

Section 234E(2) of Income Tax Act

The amount of fee referred to in sub-section (1) shall not exceed the amount of tax deductible or collectible, as the case may be.

Section 234E(3) of Income Tax Act

The amount of fee referred to in sub-section (1) shall be paid before delivering or causing to be delivered a statement in accordance with sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C.

Section 234E(4) of Income Tax Act

The provisions of this section shall apply to a statement referred to in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C 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.


Open Demat Account

For Investing or Trading

(Best Investing and Trading Platform in India)

Learn More