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

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12 responses to “Fee for delay in filing of Income Tax return w.e.f A.Y 2018-19”

  1. M S Venkatesan says:

    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.

  2. K L BHARDWAJ Tax consultant says:

    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

  3. Samit2018 says:

    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..

  4. K L BHARDWAJ Tax consultant says:

    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

  5. Sagar gondaliya says:

    sir if i file nil return after due date than also applicable section 234f

  6. CA NARENDRA SEKSARIA says:

    PROVISION IS GOOD TO ENSURE TIMELY COMPLIANCE -THIS BEING FIRST YEAR PL MAKE IT RS 500/1000 ONLY

  7. mahender says:

    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

  8. Aslam Nagori says:

    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.

    • rakesh gutgutia says:

      I Fully agree with the above coments posted by one of my college

    • PARVINDER SIDANA ADVOCATE says:

      I agreed over the comment and period should be extended to 30 sept and for audit returns 31 December

      • A Senthil,Tax Consultant says:

        I agree with these comments. Because The Govt wants a timely compliance from the Assessees. But being varies filing due dates are penalty oriented and still 90% of the works done through Tax professionals and we could not be fulfill all the works done in a stipulated due date. There is no adequate infrastructure available not only with Tax professionals but also mainly with Govt i.e website co-operation and etc etc. We have to invest more amount to get ready for this. There is no adequate Tax professionals available in the Society also. So Govt should realize the situation and it would be better to implement all in a step by step movement. Then we also will get ready for the compliance. One more Important, there must be proper instructions to be given to the General Public about the recent Incometax compliances through proper channels. This is lying with IT department. So a massive change may happen only if all co-operate.

    • Gaurav Kumar says:

      Dear Aslam, I fully agree with your comments. Will the Govt. also resiprocate with same in providing services to genaral public. will there be also late fee for negligence of public servants.

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