In a recent development, the Income Tax department has issued Circular No. 4/2024 dated 7th March 2024, announcing the ex-post facto extension of the due date for filing TDS Return Form No. 26QE. This extension applies to returns that were required to be filed during the period from 01.07.2022 to 28.02.2023, pertaining to the financial year 2022-23.
The circular highlights that specified persons who deducted tax under section 1945 of the Income-tax Act during the period from 01.07.2022 to 31.01.2023 faced challenges in filing Form No. 26QE and paying the corresponding TDS on or before the original due date. This led to the imposition of fees under section 234E and interest under clause (ii) of sub-section (1A) of section 201 of the Act.
Additionally, those who deducted tax under section 1945 during the period from 01.02.2023 to 28.02.2023 had insufficient time to file Form No. 26QE and pay the associated TDS.
To address the grievances of such specified persons, the Central Board of Direct Taxes (CBDT) has, ex-post facto, exercised its powers under section 119(2)(a) of the Act. The due date for filing Form No. 26QE has been extended to 30.05.2023 for specified persons who deducted tax under section 1945 but failed to file the required form. Importantly, any fee levied under section 234E and interest charged under section 201(1A)(ii) of the Act for the period up to 30.05.2023 in such cases shall be waived.
This extension aims to provide relief to affected entities and streamline the filing process for TDS returns, ensuring that specified persons have ample time to fulfill their obligations without incurring unnecessary penalties.
