Answer

1. F

   Facts

   Sec 234E (now Sec 427) charges ₹200 for every day of delay in filing a TDS or TCS statement, but the total fee cannot exceed the TDS amount in that statement.

2. P

   Provisions and law

   • Sec 234E, Income-tax Act 1961 (now Sec 427, Income-tax Act 2025)Late fee of ₹200 a day for a late TDS or TCS statement, capped at the TDS or TCS amount
   • Sec 200(3), Income-tax Act 1961 (now Sec 397(3)(b), Income-tax Act 2025)Deductor must file quarterly TDS statements and may file correction statements
3. A

   Analysis

   Example: Q2 FY 2025-26 Form 26Q (now Form 140) was due 31 October 2025 and filed on 9 December 2025, 39 days late, so ₹7,800. If the total TDS in that statement was only ₹5,000, the fee is capped at ₹5,000. The fee is computed by CPC and shows as a default; pay it and tag the challan in a correction statement.

4. C

   Conclusion

   1. 1Count days from the due date to the filing date
   2. 2Cap the fee at the TDS amount of that statement
   3. 3Pay it under fee for late filing in e-Pay Tax
   4. 4Tag the challan in a correction statement
   5. 5File future statements on time

The late fee is mandatory once due; it is not waived for small amounts.

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