In 2017, the government introduced a new section 234F of income tax Act 1961 to ensure timely filing of the Income Tax Returns. So, not filing your ITR on time can lead to penalty along with other related consequences. Let's understand section 234F.
According to section 234F, if a person requires to file an Income Tax Return as per Section 139(1), but the taxpayer didn't pay the Taxes within the due date then the taxpayer has to pay a Late Fee. The late fee relies on the taxpayer's total Income. If a taxpayer pays tax after 31st July then the section 234F will become operative.
Check the following points and know the applicability of section 234F income tax:
Paying tax is mandatory for every individual who comes under the income tax slab.
The due dates for filing an income tax return for the different category as follows:
|Individuals who are not required to be audited||31st July|
|Company or Individual whose account are required to be audited||30th September|
|Individual those who are required to provide report referred in Section 92E||30th November|
These entities need to pay late filing fees if the ITR is filed after the due dates:
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For example, here’s the illustration for better understanding, pay fees under section 234F:
|Total Income||Return Filing Date||Fees Under Section 234F|
|Rs. 3,00,000||5th July 2018||Not Applicable|
|Rs. 4,00,000||10 Jan 2019||Rs. 1000|
|Rs. 4,50,000||13th November 2018||Rs. 1000|
|Rs. 6,00,000||31 July 2018||Not Applicable|
|Rs. 9,00,000||15th October 2018||Rs. 5000|
|Rs. 10,00,000||25th July 2018||Not Applicable|
|Rs. 18,00,000||15th February 2019||Rs. 1000|
|Rs. 25,00,000||10th August 2018||Rs. 5000|
As per the Finance Act 2017, late fees can be paid by Self Assessment Tax under section 140A. To pay late fees under section 234F, a person can visit the NSDL website and get the ITNS 280 Challan.
In case a taxpayer delay to submit an income tax return along with the payable tax and interest, then the delay fee is also payable. Therefore, it is always advised to the salaried person to complete tax return filing as soon as they receive the salary.
Before the introduction of 234F, the penalty charges were under Section 271F. In this section, if the ITR is not filed before the end of the assessment year, then the assessing officer may charge a penalty up to Rs. 5,000.
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