What is Late TDS filing consequences?
Nexa Consultancy | Startup & Finance Glossary
Failure to file TDS returns by the due date attracts a late filing fee under Section 234E of the Income Tax Act, which is ₹200 per day until the return is filed, subject to the total TDS amount. It can also lead to penalties and prosecution.
Startup Example: A startup deducts TDS for salaries in June but files the TDS return for that quarter in October instead of by the July 31st due date. It will incur a daily penalty for the delay.
We help startups avoid these interest costs through our compliance management.