If you are a taxpayer in India, it is essential to be aware of the various sections under the Income Tax Act that may impact you. One such section is Section 234F, which was introduced in the year 2017. In this blog post, we will discuss everything you need to know about Section 234F of the Income Tax Act.
Introduction to Section 234F
Section 234F of the Income Tax Act was introduced as part of the Finance Act 2017, and it came into effect from 1st April 2018. This section deals with the late filing of income tax returns by taxpayers.
As per this section, if a taxpayer fails to file his/her income tax return within the due date, he/she will be liable to pay a late fee. The late fee for non-filing or delayed filing of the income tax return will be levied under Section 234F.
What is the late fee under Section 234F?
If a taxpayer fails to file his/her income tax return by the due date, a late fee will be levied under Section 234F. The amount of late fee will depend on the date of filing the return. The late fee will be as follows:
- For returns filed after the due date but on or before 31st December of the assessment year – Rs. 5,000
- For returns filed after 31st December of the assessment year – Rs. 10,000
However, if the total income of the taxpayer does not exceed Rs. 5,00,000, the maximum late fee levied will be Rs. 1,000.
Important points to note:
- The late fee will be in addition to any interest or penalty levied for delayed filing of the return.
- The late fee will be applicable from Assessment Year 2018-19 onwards.
- The late fee will be levied for each year of delay.
Exceptions to Section 234F
There are certain exceptions to the late fee under Section 234F. These exceptions are as follows:
- If the total income of the taxpayer does not exceed Rs. 5,00,000, the late fee will be capped at Rs. 1,000.
- If the taxpayer is an individual who is 80 years or more at any time during the relevant assessment year, the late fee will be capped at Rs. 1,000.
- If the taxpayer has already filed the return but has not paid the tax due, the late fee will not be levied under this section.
Conclusion
Section 234F of the Income Tax Act was introduced to encourage taxpayers to file their income tax returns on time. It is important to note that the late fee under this section is in addition to any interest or penalty levied for delayed filing of the return. Taxpayers should make sure to file their income tax returns on time to avoid any unnecessary penalties or fees.
Read more useful content:
- section 234e of income tax act
- section 286 of income tax act
- section 90a of income tax act
- section 40a(7) of income tax act
- section 226(3) of income tax act
- section 24 of income tax act
Frequently Asked Questions (FAQs)
Q. What is Section 234F of the Income Tax Act?
Section 234F is a section introduced in the Income Tax Act, 1961, which imposes a late fee for taxpayers who fail to file their income tax returns within the due date.
Q. When did Section 234F come into effect?
Section 234F came into effect from April 1, 2018.
Q. Who is liable to pay late fees under Section 234F?
Any taxpayer who fails to file their income tax return within the due date is liable to pay late fees under Section 234F.
Q. What is the late fee under Section 234F?
If a taxpayer files their income tax return after the due date but before December 31st of the assessment year, the late fee will be Rs. 5,000. If the taxpayer files the return after December 31st of the assessment year, the late fee will be Rs. 10,000. However, if the total income of the taxpayer does not exceed Rs. 5,00,000, the maximum late fee levied will be Rs. 1,000.
Q. Is the late fee under Section 234F applicable for revised returns?
No, the late fee under Section 234F is not applicable for revised returns. It is applicable only for original returns filed after the due date.
Q. What are the exceptions to late fee under Section 234F?
The exceptions to late fee under Section 234F are as follows:
If the total income of the taxpayer does not exceed Rs. 5,00,000, the late fee will be capped at Rs. 1,000.
If the taxpayer is an individual who is 80 years or more at any time during the relevant assessment year, the late fee will be capped at Rs. 1,000.
If the taxpayer has already filed the return but has not paid the tax due, the late fee will not be levied under this section.
Q. Is the late fee under Section 234F applicable for taxpayers who do not have any tax liability?
Yes, the late fee under Section 234F is applicable to all taxpayers who fail to file their income tax returns within the due date, irrespective of their tax liability.
Q. Can the late fee under Section 234F be waived off?
No, the late fee under Section 234F cannot be waived off, except in cases where the taxpayer is eligible for the exceptions mentioned in the section.
Q. What is the penalty for not filing an income tax return?
Apart from the late fee under Section 234F, a penalty of Rs. 10,000 may be levied under Section 271F for taxpayers who do not file their income tax returns at all.
Q. How can taxpayers avoid the late fee under Section 234F?
Taxpayers can avoid the late fee under Section 234F by filing their income tax returns within the due date, i.e., by July 31st of the assessment year for most taxpayers and by September 30th of the assessment year for those who are required to get their accounts audited.
