Sections 271H and 271I of Income Tax Act 1961

Section 271H deals with failure to furnish TDS or TCS statements on time and furnishing incorrect information in those statements. Section 271I deals with failure to furnish information, or furnishing inaccurate information, required under section 195(6) for payments to non-residents or foreign companies.

Section 271H - Penalty for TDS and TCS Statement Defaults

The Assessing Officer may impose penalty where a person fails to deliver a statement within the time prescribed under section 200(3) or the proviso to section 206C(3), or furnishes incorrect information in such statement.

Section 271H(3) - Relief for Delayed Statement

For Assessment Year 2025-26 onwards, the statutory relief period for a delayed TDS or TCS statement is one month from the prescribed due date. No penalty for the delay covered by section 271H(1)(a) is levied where the person proves that the tax deducted or collected, together with applicable fee and interest, has been paid to the credit of the Central Government and the statement has been delivered within that one-month period.

Section 234E - Late Filing Fee

Section 234E separately provides a late filing fee of Rs. 200 for every day of delay in furnishing a TDS or TCS statement, subject to the statutory cap. The fee under section 234E and penalty under section 271H are distinct provisions.

Reasonable Cause under Section 273B

Section 271H is included in section 273B. Therefore, where the taxpayer proves reasonable cause for the relevant failure, penalty is not imposable under section 271H. The availability of this protection depends on the facts and evidence of the case.

Section 271I - Information Required under Section 195(6)

Section 271I provides that if a person required to furnish information under section 195(6) fails to furnish it, or furnishes inaccurate information, the Assessing Officer may direct that person to pay a penalty of Rs. 1,00,000.

What is Section 195(6)?

Section 195(6) requires the person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum whether or not chargeable to tax under the Act, to furnish prescribed information relating to that payment. The reporting framework is prescribed in the Income-tax Rules, including the applicable requirements for Form 15CA and, where required, Form 15CB.

Reasonable Cause for Section 271I

Section 271I is also included in section 273B. Accordingly, penalty is not imposable for a failure covered by section 271I if the person proves that there was reasonable cause for that failure.

Sections 271H and 271I at a Glance

Official Resources

Income Tax Department - Section 271H

Income Tax Department - TDS TCS Late Filing Fee and Penalty

Income Tax Department - Section 271I

Income Tax Department - Section 273B

Income Tax e-Filing Portal