If the individual can demonstrate that he filed the TDS/TCS return within the one-year window following the due date, along with the late filing fee and interest (if any), to the credit of the Central Government, no penalty will be assessed under section 271H for the failure to file the TDS/TCS return. In other words, if the following criteria are met, there won’t be a penalty under Section 271H for filing a TDS/TCS return late:

• The government gets the tax that was deducted or collected at the source.
• Late filing penalties and interest, if any, are paid to the government’s credit.