Delayed TDS, TCS and financial transaction statements attract mandatory compensatory fees, subject to statutory caps and payment requirements.

Section 427 of the Income-tax Act, 2025 imposes a mandatory, compensatory fee for delayed filing of TDS and TCS statements. The daily fee is capped at the tax deductible or collectible and must be paid before furnishing the delayed statement. Delayed furnishing of a Statement of Financial Transaction or Reportable Account also attracts a daily fee subject to a separate statutory maximum. The provision expressly extends the fee regime to such statements, while delayed TDS/TCS statement fees are computed during processing.

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