TDS return late filing fee in 2026 (tax year 2026-27): ₹200 a day (section 427, old 234E), interest, and the one-month penalty window

Last updated 11 Oct 2026 · India

Last checked: 11 Oct 2026 against Income Tax Department: Form 140 FAQs (fee u/s 427, penalty u/s 461) and Income Tax Department: Penalties under the Income-tax law.

Short answer. If a TDS or TCS statement for tax year 2026-27 is filed late, the fee is ₹200 for every day of delay under section 427 of the Income-tax Act 2025 (the old 234E), capped at the tax deductible, and it must be paid before the statement is filed (Income Tax Department Form 140 FAQs; Act in force from 1 April 2026). Separately, the Assessing Officer may levy a penalty of ₹10,000 to ₹1,00,000 under section 461 (old 271H), but not if the tax, fee and interest are paid and the statement is filed within one month of the due date. For the Q2 statement due 31 Oct 2026 (Form 140 note), that is by 30 November 2026. Under the old Act's section 271H the window was one year until it was cut to one month with effect from Assessment Year 2025-26 (Income Tax Department penalties note).

Why the fee exists

Your deductee can claim the TDS only after your statement is processed and the credit appears in their tax statement. A late statement holds up their refund or their return, so the law makes delay cost the deductor a fixed amount every day, without any notice or hearing.

The three costs, side by side

Default	2025 Act	Old 1961 Act	Amount
Statement filed late	s.427 (fee)	s.234E	₹200 per day, up to the TDS amount; automatic
Statement late or wrong	s.461 (penalty)	s.271H	₹10,000 to ₹1,00,000, at the officer's discretion; no penalty for delay if everything is paid and the statement filed within one month of the due date (271H: one year earlier, one month with effect from AY 2025-26)
TDS deducted late or paid late	s.398 (interest)	s.201(1A)	1% a month from when it was deductible to deduction; 1.5% a month from deduction to payment; part of a month counts as a month

Worked examples (Q2 2026-27, due Sat 31 Oct 2026)

Filed 5 Nov: 5 days late × ₹200 = ₹1,000 fee (if the TDS in the statement is at least ₹1,000). Within one month, so no s.461 penalty for delay if tax, fee and interest are paid.
Filed 15 Dec: 45 days × ₹200 = ₹9,000 fee, and the one-month window has passed, so a ₹10,000–₹1,00,000 penalty is possible.
Small deductor: if the statement shows ₹4,000 of TDS, the fee stops at ₹4,000 however late you are.

The fee is paid with a challan (it shows in the "fee" column of the statement). Count from the day after the due date to the date of filing.

Common mistakes

Assuming the old one-year relief still applies. The Income Tax Department says 271H's one-year period was cut to one month with effect from AY 2025-26, and section 461 also allows one month. Plan on one month for every statement.
Filing without paying the fee. The statement is then processed with a default and you get a demand on TRACES.
Thinking a nil quarter needs no care. If you have a TAN and deducted nothing, check whether you need a declaration for non-filing on TRACES rather than leaving the quarter blank.
Mixing up old and new years. A late FY 2025-26 statement (26Q etc.) is still governed by 234E and 271H.
Ignoring the deductee. Delay also delays their Form 131 and their credit; tell them when to expect it.

Checklist if you are already late

Work out days late × ₹200, capped at the TDS
Pay any interest under s.398 and the fee by challan
File the statement (Form 138/140/144/143) as soon as possible
Aim to finish within one month of the due date (30 Nov 2026 for Q2)
Download the processing result on TRACES and clear any demand
Issue Form 131 certificates (and salary certificates for Form 138)

Not late yet? See TDS return due dates for Q2 2026-27 and Form 26Q to Form 140.

Frequently asked questions

What is the late fee for a TDS return in 2026-27?

₹200 per day under section 427 of the Income-tax Act 2025 (old section 234E), capped at the amount of tax deductible, payable before filing.

Is there a penalty besides the late fee?

Yes. Under section 461 (old 271H) the Assessing Officer may levy ₹10,000 to ₹1,00,000, but not for delay if tax, fee and interest are paid and the statement is filed within one month of the due date.

What is the last date to avoid the penalty for the Q2 2026-27 TDS return?

30 November 2026, one month after the 31 October 2026 due date, provided tax, fee and interest are paid.

What interest applies to late TDS payment?

Under section 398: 1% a month from when tax was deductible until it was deducted, and 1.5% a month from deduction until payment; part of a month counts as a full month.

Official sources

Not tax or legal advice. This is a free explainer of public rules; deadlines and rules can change by notification, so confirm on the official portal or with your CA before you file. Last checked 11 Oct 2026.

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