Section 427
Section 427: fee for default in furnishing statements
Section 427 levies a daily late fee - separate from any penalty - on two kinds of statement defaults: failing to deliver a TDS/TCS statement under Section 397(3)(b), and failing to furnish a statement of financial transaction or reportable account under Section 508.
Fee for late TDS/TCS statement - Section 427(1) and (2)
"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 ₹200 for every day for which such failure continues."
The amount of this fee must not exceed the amount of tax deductible or collectible, and must be paid before delivering (or causing to be delivered) the statement.
| Parameter | Detail |
|---|---|
| Fee rate | ₹200 for every day the failure continues |
| Cap | Not to exceed the amount of tax deductible or collectible |
| When payable | Before delivering (or causing to be delivered) the statement |
Fee for late statement of financial transaction or reportable account - Section 427(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 ₹200 for every day for which such failure continues and such fee shall not exceed a sum of ₹1,00,000."
| Parameter | Detail |
|---|---|
| Fee rate | ₹200 for every day the failure continues |
| Cap | ₹1,00,000 |
Frequently asked questions
What is the fee for a late TDS/TCS statement under Section 427?
₹200 for every day the failure continues, capped at the amount of tax deductible or collectible, and it must be paid before the statement is delivered.
What is the fee for a late statement of financial transaction under Section 427?
₹200 for every day the failure continues, capped at ₹1,00,000, for a statement of financial transaction or reportable account required under Section 508(1) that is not furnished within the time prescribed under Section 508(2).
Related sections
Want this applied to your actual filing, not just explained?
Calculate your late fee for TDS/TCS or SFT statement delayLast updated 9 September 2026