Section 234F of the Income Tax Act - Penalty for Late Filing of Income Tax Return (ITR)

ITR Filing Due Date for AY 2024-25

The last date for filing ITR under section 139(1) for AY 2024-25 was on 31st July 2024. However, missing this deadline results in late filing fees in the form of penalty and interest and legal consequences. Given below is the ITR filing deadline for different persons.

Missed the ITR filing deadline? File a belated ITR now.

Section 234F of the Income Tax Act

Section 234F of the Income Tax Act of 1961 was introduced in 2017. As per section 234F of the Income Tax Act, if a person is required to file an Income Tax Return (ITR forms) as per the provisions of the Income Tax Law [section 139(1)] but does not file it within the prescribed time limit then late fees have to be deposited by him while filing his ITR form. The quantum of fees shall depend upon the the total income.

Check out our guide on: Fees for Delay in Filing ITR u/s 234F

Section 234F of the Income Tax Act Applicability

Section 234F of the Income Tax Act applies to the following persons -

• Individual
• Company
• Firm
• AOP (Association of Persons)

All the above-mentioned persons who are required to file ITR have to pay a penalty under section 234F if they fail to do so within the specified timelines.

Who is Required to File Income Tax Return?

If you fall under the below conditions, you must file your income tax return mandatorily:

1. If your total income exceeds the basic exemption limit.
   If an individual’s income exceeds the basic exemption limit under the old or the new tax regime, then he/she is liable to file an ITR. The basic exemption limit for individuals is different under both old and new regimes. To know more about the latest income tax slabs, read here.
   As per the old tax regime, the minimum exemption limit shall not be calculated after deducting the exemptions from capital gains under sections 54, 54B, 54D, 54EC, 54F, 54G, 54GA, or 54GB and deduction under Section 80C to 80U. However, these exemptions are not available under the new tax regime, which is now the default tax regime.
   Note: If you have not filed your ITR by 31st july 2024 or missed the ITR filing due date for FY 2023-24, you can file your ITR only under the new regime and cannot opt for old regime.
2. If you have assets outside India
   An individual must file a tax return if he/she:
   1. Has (as a beneficiary or otherwise) any asset (including any financial interest in any company) located outside of India
   2. Has signing authority in any account located outside India
   3. Is a beneficiary of any asset located outside of India (including any financial interest in any organization).
      This clause will apply to both residents and ordinary residents in India.
3. If you deposit more than Rs 1 crore in a bank account
   If a person has deposited Rs 1 crore or more in one or more current accounts with a bank during the previous year, he/she must file his return.
   There has been no mention of the deposit in a Post Office current account. Thus, if a person deposits more than Rs 1 crore in a post office current account and his income exceeds the basic exemption limit, he may not be obliged to file a return.
4. If you spend Rs 2 lakh on international travel
   If an individual spent more than Rs 2 lakh on travel to a foreign nation for himself or for anybody else in the previous year, he must file a return.
5. If your annual electricity bill is Rs 1 lakh
   If a person spent more than Rs 1 lakh on power consumption in the preceding year, he or she must file a return.
6. If the gross receipts from a profession exceed Rs 10 lakh
   If a person's total gross receipts from his or her profession exceeded Rs 10 lakh in the preceding year, he or she must file a return.
7. If the total amount of TDS and TCS is Rs 25,000 or more
   If the total amount of tax deducted at source (TDS) and tax collected at source (TCS) in his case during the previous year was Rs 25,000 or more, an individual (under 60 years of age) is required to file his return. In the event of a resident senior person aged 60 years or more at any point during the preceding year, the Rs 25,000 threshold limit is increased to Rs 50,000.
8. If turnover of your business is more than Rs 60 lakh
   If a person's total sales, turnover, or gross receipts for the preceding year exceeded Rs 60 lakh, he or she must file a tax return.
9. If you have a deposit of Rs 50 lakh or more in a savings bank account
   If an individual's total deposit in one or more savings bank accounts during the previous year was Rs 50 lakh or more, he or she must file a return.
   You can read further here.

What is the Fine for Late Filing of ITR Under Section 234F of the Income Tax Act?

(A). If your total income is more than 5 Lakhs & return is filed after the due date, Fee = Rs. 5000
(B). If the total income is less than or equal to 5 Lakhs & return is filed after the due date, Fee = Rs.1000.
(C). If the total income does not exceed the exemption limit, No late filing Fees applicable

Example: A is a super senior citizen. His Gross Total Income for F.Y. 2021-22 is Rs. 4,95,000/-.He is filing a late return. Whether late filing fees be levied?
In the above case, late filing fees u/s 234F shall not be levied since A is a super senior citizen and his GTI does not exceed the basic exemption limit.

Let us understand the late ITR filing fee calculation under Section 234F

Let’s understand the quantum of fee that would be payable under Section 234 F on the following income and return filing date through an example:

How to Pay 234F Fees Under Section 234F?

1. Challan No. 280
2. Type of Payment Self Assessment(300)
3. In “others” column Others Fill 234F

How to Avoid Paying the Late Fees Under Section 234F to the Income Tax Department?

In order to avoid payment of the late fee for ITR u/s 234F of the Income Tax Act, one needs to file the income tax return on time for the relevant assessment year.

However, if you miss the ITR filing deadline, you can still file a belated return by 31st December of the relevant assessment year.

File your belated return now and claim your tax refund. Start Now

Can the Late Fees u/s 234F be Waived of in the Genuine Cases?

No, fees u/s 234F are mandatorily applicable. Therefore, it cannot be waived off by income-tax authority. However, in case of a genuine reason, taxpayers can file a condonation request to the Income Tax Department stating the unavoidable circumstances for such delay in ITR filing.

Can Excess TDS Deducted be Adjusted from the Fees u/s 234F?

Yes, the income tax department will adjust the excess TDS deducted (which you would have received by way of a refund) in the payment of late fees under section 234F.

Will the Impact of Amendment Under Section 234F Come on the Intimation Under Section 143(1)?

A consequential amendment in section 143(1) has been done in consonance with the introduction of section 234F of the Income Tax Act. Now, the fee payable under section 234F would also be considered in the computation of the amount payable or refund due, as the case may be, on account of the processing of the return.

Is 234F a Fee or a Penalty?

According to the Income Tax Act, the amount payable under sec 234F is termed as late fees. But, it has been observed that in common parlance, many of us are designating the amount under sec 234F as the penalty instead of fees, which is not the case. The reason is that, this fee is steeper in nature in which the assessing officer has no role in deciding its applicability. It is automatically applied after the due date.

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