|QUERY:||Can fee paid under Section 234E be claimed as deduction while computing the total income under the head "Profit and gains of business or profession"?|
|ANSWER:||Fee paid u/s. 234E is not a penalty or interest under the Income-tax Act, 1961. It is a fee which is for late filing of statement of tax deduction at source u/s. 200(3) of the Act. Similarly fee paid for late filing of statement of tax collected at source u/s. 206C(3) of the Act. Hence there is no loss to the revenue, as tax deducted or tax collected had to be paid before filing the statement. So fee is payable by the tax deductor or tax collector for late compliance of law. Hence, the same can be claimed as deduction while computing the total income under the head "Profits and gains of business or profession."|
|EXPERT:||CA. H. N. Motiwalla|
|SECTION(S):||200(3), 206C(3), 234E|
|CATCH WORDS:||Fee for default in furnishing statements -Fee is not a penalty or interest.|
Opinion Of Eminent Legal Luminaries On Controversial Issues
Fee for default in furnishing statements -Fee is not a penalty or interest.
Credit: Several of the queries and answers are reproduced with permission from the AIFTP Journal. We thank AIFTP for generously allowing us to host their research material.
Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this document, the existence of mistakes and omissions herein is not ruled out. Neither the author nor itatonline.org and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of itatonline.org