|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:||Click here to read the full answer of the expert|
|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.|
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.