Fee for delayed filing of Income Tax Return return under Section 234F of Income Tax Act, 1961 (Applicable w.e.f 01.04.2018 i.e for A.Y 2018-19)
In view of the non-intrusive information-driven approach for improving tax compliance and effective utilization of information in tax administration, it is important that the returns are filed within the due dates specified in section 139(1). Further, the reduced time limits proposed for making of assessment are also based on pre-requisite that returns are filed on time.
In order to ensure that return is filed within due date, section 234F is inserted in the Act to provide that a fee for delay in furnishing of return shall be levied for assessment year 2018-19 and onwards in a case where the return is not filed within the due dates specified for filing of return under sub-section (1) of section 139 i.e. 31st July in case of Individual/HUF/Firm (Not liable to audit) or 30th September in case of Company/Firms/Charitable Trusts (Liable to Audit).
The fee structure under section 234F is as follows:—
(i) a fee of five thousand rupees shall be payable, if the return is furnished after the due date but on or before the 31stday of December of the assessment year;
(ii) a fee of ten thousand rupees shall be payable in any other case.
However, in a case where the total income does not exceed five lakh rupees, the fee amount shall not exceed one thousand rupees.
Consequential amendment in section 140A to include that in case of delay in furnishing of return of income, alongwith the tax and interest payable, fee for delay in furnishing of return of income shall also be payable.
Consequential amendment in sub-section (1) of section 143, provided that in computation of amount payable or refund due, as the case may be, on account of processing of return under the said sub-section, the fee payable under section 234F shall also be taken into account.
Consequentially, provisions of section 271F in respect of penalty for failure to furnish return of income shall not apply in respect of assessment year 2018-19 and onwards.
These amendments will take effect from lst April, 2018 and will, accordingly apply in relation to assessment year 2018-19 and subsequent years.
It is advised to file Income Tax Return well in time i.e before 31st July or 30th September, as applicable, to avoid late fee as well as last time rush.
Republished with amendments
no doubt, intentions of Govt is good, but compliances to these provisions becoming very difficult as a Professional, Adhar linking, notebandi, GST n now 234F, Govt Machinary, Natural Calamaties, System Support, 26AS reconciliations, Knowledge level of General Public, some work in different Cities, have bank accounts at other cities, Hosing Loan Certiifcates etc documents at various places, how all will be collected in time, data in 26AS is updated 2/3 times, It is difficult to do all this correctly with in such a few time, effectively we get 45days (15 June to 31 st July) How much returns we will be able to file??????, Date should be extended….humble request……it is hardship to honest citizens….saali jindagi bhagam bhag me hi gujar rahi….
26AS are not ready with correct n full taxes deducted, assessee are not well equipped n with knowledge of how to handle Income Tax matters, hence it is difficult to explain them to submit returns before due date, DDO, Deductors, Banks etc still not issuing the 16/16A to d assessee, how the returns shall be submitted in such situation ??? date should be extended…we are in d office for more than 12 hours, taking tablets for BP/ Suger…i know no body cares for this, but kya 70 saal ki avyavastha 100 din me kaise thik hogi…to ye baat general public ko nahi lagti kya…. pahle addhar linking phir note bandi, phir GST, phir 234F….uuufffffff!!!!!!!
The govt. should extend the date upto 30th september 2018 for salaried and non audited and 31st december for audited. this is a first year of this rule and most of the state is facing flood problem. the govt. should be flexible on this change and should give relief to tax payers.
If a person has salary income of just Rs.2,50,000/- i.e., below taxable limit, is it mandatory to file I.T. Return. My next query is,in this case, what will happen if the Return is filed after 01.08.2018, whether Penalty will be imposed on him/her.
KANUN VYAVHARIK HONA CHAHIA, KISI BHI NAYE KANUN KO LAGU KARNE SE PAHLE APKE PAS UPLABDH MACHINERY KO BHI DEKHANA HOGA, CA AUR ADVOCATE KI BHI AK KSHAMTA HAI KOI BHI NAYE PRAVDHAN KO LAGU KARNE SE PAHLE HAME IN PAHLUO PAR VICHAR KARNA HOGA, KHALI LATE FEES LAGA DENE SE HI HAM SAFAL NHI HOGE,
I think , govt should take step to early submition of
TDS return by tax diducter before bringing this change.It will only bring hardship to taxpayers.
TDS deductors should be compelled to deposit the money collected before 30 April so that it will reflect in the assessee’s 26AS. This will give enough time for the assessee to file the IT returns.
PROVISION IS GOOD TO ENSURE TIMELY COMPLIANCE -THIS BEING FIRST YEAR PL MAKE IT RS 120000-00 so that other nirmal modi will take the tax payer money
Before implementing late fee Govt. should ensure that bank and other institution will file there TDS return early and issue 16A early. Without TDS matching how any Taxable person file there Return..
PROVISION IS GOOD TO ENSURE TIMELY COMPLIANCE -THIS BEING FIRST YEAR PL MAKE IT RS 120000-00 SO THAT OTHER NIRMAL MODI WILL TAKE ALL THE MONEY OF TAX PAYERS
sir if i file nil return after due date than also applicable section 234f
PROVISION IS GOOD TO ENSURE TIMELY COMPLIANCE -THIS BEING FIRST YEAR PL MAKE IT RS 500/1000 ONLY
i think the last day of filing of IT is 31august ,which is 75 days for filing , which is practically not sufficient ,therefore should be extended to 30 sept for filing
It will be nearly impossible for consultants to file all return before time allowed under section 139(1). The TDS certificate will not be available before 15th june and therefore only 45 day will be available to file. This will discourage new assessee to file return and encourage existing assessee to show income below Rs 5 lakh to avoid penalty.