§427

Section 427 — Fee for default in furnishing statements

Income-tax Act, 2025 (amended upto 2026)

In plain terms: This section charges a fee of ₹200 per day for failing to file the TDS/TCS statement under section 397(3)(b) (also for statements of financial transactions and reportable accounts under section 508). The fee cannot exceed the tax deductible or collectible, and must be paid before the statement is delivered.

[107][(1) Without prejudice to the provisions of this Act, where any person fails to deliver or cause to be delivered a statement as per section 397(3)(b) within the time prescribed therein, he shall be liable to pay by way of fee, a sum of Rs. 200 for every day for which such failure continues.

(2) The amount of fee referred to in sub-section (1) shall--

(a) not exceed the amount of tax deductible or collectible; and

(b) be paid before delivering or causing to be delivered the statement, as per sub-section (1).

(3) Without prejudice to the provisions of this Act, where any person who is required to furnish a statement of financial transaction or reportable account under section 508(1), fails to furnish such statement within the time prescribed under section 508(2), he shall be liable to pay by way of fee, a sum of Rs. 200 for every day for which such failure continues and such fee shall not exceed a sum of Rs. 100000]