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Not filing your ITR within the deadline can lead to a penalty or late filing fees, besides inconveniences attached to the delay. Section 234F covers everything about late filing fees and the condition in which it becomes applicable. In this guide, we have covered each and every aspect related to the applicability of section 234F as per Income Tax Act 1961. Read carefully to avoid being the victim of section 234F penalty.
As per section 234F of the Income Tax Act, if a person is required to an file Income Tax Return (ITR forms) as per the provisions the of 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 time of filing the return and the total income.
If you fall in the below conditions then you have to mandatorily file your income tax return:
The due dates for filing Income Tax Return under section 139 (1) of the Income Tax Act for different categories of taxpayers are as under:
|Category||Due Date of Filing ITR (FY 2021- 22)|
|Individuals who are not required to be audited|
|Company or Individual whose accounts are required to be audited|
|Individual who is required to furnish report referred in section 92E|
All persons including individuals, HUF, Company, Firm, AOP etc. will be covered under the scope of Section 234F of Income Tax Act 1961. All persons will be liable to pay late filing fees when the Income Tax Return is filed after their respective due dates.
(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 Rs. 2.5 Lakh, 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’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:
|Total Income||Return Filing Date||Amount of Fees||u/s 234F Reason|
|3,40,000||30/06/2022||NA||Return is filed before the due date|
|2,20,000||31/03/2022||NA||Since, income is below 2.5 lakh.|
|4,00,000||Not filed||1000||Since, income is below 5 lakh.|
|8,50,000||15/11/2022||5000||Since, income is above 5 lakh.|
The provisions of penalty under section 234F shall be applicable from 1 April 2018 i.e. in respect of Income Tax returns to be filed for FY 2017-18 (or AY 2018-19). In simple words, if we file the income tax return of F.Y 17-18 after 31st August 2018 then fees u/s 234F shall become operative. Financial year 17-18 was the first year when any such fees would be leviable without the intervention of Assessing Officer. Similarly if return for F.Y. 2019-20is filed after 31st July 2020, then penalty under 234F will be levied.
Challan No. 280
Type of payment - Self assessment (300)
Fill 234 F amount in column "Others".
The fees u/s 234F shall be payable under section 140A (Self Assessment Tax). A consequential amendment has been made in section 140A to include that in case of delay in furnishing of return of income, along with the tax and interest payable, the fee for delay in furnishing of return of income shall also be payable.
Before the introduction of sec 234F, the penalty for failure to furnish the return of income was leviable under section 271F.
As per this section, if the income tax return was not filed before the end of the relevant assessment year then the Assessing Officer, at its discretion may levy a penalty amounting to Rs. 5,000/- However, this section has been withdrawn from the assessment year 2018-19 and onwards after coming of penalty under section 234F into force.
In order to avoid payment of late fee u/s 234F, one needs to file the income tax return on time in respect of every assessment year :-) Visit tax2win for hassle free ITR filing.
No, fees u/s 234F are mandatorily applicable. Therefore, it cannot be waived off by income-tax authority.
Yes, the income tax department will adjust the excess TDS deducted (which you would have received by the way of refund) in the payment of late fees under section 234F.
A consequential amendment in section 143(1) has been done in consonance with the introduction of sec 234F. 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 processing of the return.
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.
Even after the payment of taxes if you don’t file your IT returns then the IT department may issue a notice of non-compliance after the end of relevant assessment year and late filing fees will be levied u/s 234F.
As per section 234F the amount of fee u/s 234F shall be Rs.1000 where income is below Rs. 5,00,000.
Hence, in your case, the quantum of fees/penalty shall be Rs. 1000 if you file it after July 31st.
No, it is not possible to file the income tax return now for FY 2020-21.
Yes, not verifying the ITR is deemed as you have not filed your ITR and if you have not filed your ITR within the deadline, you shall be liable to pay the penalty as per your salary slab.
Yes, fee under section 234F shall be levied if TDS has been deducted by your employer and your salary is more than the basic exemption limit.
Yes, fee under section 234F shall be levied even if TDS has been deducted by the bank and your total income is more than the basic exemption limit.
Yes, penalty under Section 234F would be leviable in your case. In your case, you are required to file ITR as per law because your income before deductions is above the basic exemption limit. Therefore, if you file the belated return then sec 234F shall be applicable. Late Fees of Rs. 1000 shall be applicable in your case.
No, fees u/s 234F shall not be applicable in your case as your income is below exemption limit.
Yes, both will be applicable simultaneously in a situation when your tax is payable. However, in case of late filing of return when no tax is payable then interest under sec 234 A shall not be levied and only late fee u/s 234F shall be leviable.
Just don’t get confused in both of these sections. Sec 234A speaks for levy of interest at the rate of 1% on the tax amount due while section 234F talks about the levy of a definite amount of late fees depending on the date of filing of the return. Therefore, both will be applicable in case of delay in filing of return u/s 139(1) if your tax is unpaid.
In this case, after the e-verification of return, it would be processed by the income tax department as per the normal provisions of the income tax law.
No, there is no such exemption of penalty under section 234F. The conditions of levy and the quantum of fees remain the same in case of every individual including super senior citizen.
Section 234F becomes applicable to an assessee when he/she is compulsorily required to file an income tax return & files income tax return after 31st July, 2019.
Section 234E levies late fees on delay in submitting TDS return after the relevant due dates. While on the other hand, Sec 234F levies late fees on filing income tax return after 31st July, 2022 .
Section 139 of the Income Tax Act 1961 defines different types of the income tax returns which can be filed by various assessees. Like mandatory/ voluntary return u/s 139(1), loss return u/s 139(3), belated return u/s 139(4), revised return u/s 139(5), income tax return of a charity or religious institution u/s 139(4A) etc.
Section 271F imposes a penalty on failure to furnish income tax return till the end of relevant AY at the discretion of the assessing officer. But, from 1st April, 2017 Section 271F has been abolished & new late filing fee under Section 234F has been introduced.
Section 234D levies interest on the excess amount of refund given to the assessee. When a refund is given to an assessee as per Sec 143(1) & it is found that either refund was not due or an excess refund has been given, then on the excess tax refund, an interest @ 0.5% per month is to be paid.
Section 234A levy interest on delay in filing of income tax return @ 1% per month. You can read more about Sec 234A, Sec 234B & Sec 234C in our blog.
Income tax returns can be filed FREE of cost by the assessee by making self-assessment. In case, any consultation is needed for tax saving & planning then consultation charges are required to be paid.
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