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Section 234F- Penalty and Charges for Filing Late Income Tax Return

Updated on June 19, 2024 , 12126 views

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.

Section 234F

What is 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.

When to File an Income Tax Return?

Check the following points and know the applicability of section 234F income tax:

  • If a person's total gross income exceeds Rs.2.5 lakh (person below 60 years) Rs. 3,00,000 (person above 60 years) and Rs. 5,00,000 (person above 80 years) they have to file an income Tax Return.
  • If a person is a beneficiary of any asset located outside of India.

Dates for Filing ITR U/S 139(1)

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:

Category Due Date
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

Eligibility Criteria Under Section 234F

These entities need to pay late filing fees if the ITR is filed after the due dates:

  • Individual
  • HUF
  • Company
  • Firm
  • AOP

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Late Fee Imposed under Section 234F

  • In case the ITR is filed after 31 July or before 31st December of the assessment year, then Rs.5,000 will be charged
  • If the ITR is filed after 31st December of the assessment year, then Rs. 10,000 will be charged.
  • If the total income after Deduction is less than or equal to 5 lakh, then the fee amount will be below Rs. 1000

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.

Section 271F

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.

All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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