Article discusses recent Changes in Individual Income Tax Slab Rates, Rebate U/S 87A, Surcharge on Total Income, Fees for Delayed Filing and Compulsory Quoting Of PAN


Income <2.5 Lakhs NIL
2.5 Lakhs- 5 lakhs 5%
5 Lakhs- 10 Lakhs 20%
10 Lakhs and above 30%


The Tax rebate which was available for all assesses with total income upto Rs. 5 lacs, were eligible for rebate u/s 87A upto Rs. 5000 on the tax payable.

However, from AY 2018-19 (FY 2017-18), the rebate is restricted to people having total income upto Rs. 3.5 lacs only. And the rebate u/s 87A has been reduced to Rs. 2500.


In FY 2016-17 (AY 17-18), the surcharge for individuals is applicable for those who have Total income over Rs. 1 crore at the rate of 15% of the total taxes payable.

From FY 2017-18 (AY 18-19), the surcharge for individuals is applicable as follows:

  • Total Income Up to Rs. 50 lacs – No surcharge
  • Total Income from Rs. 50 lacs to Rs. 1 crore – 10% of tax payable
  • Total Income of Rs.1 crore and above– 15% of tax payable


New section 234F has been introduced to provide for a fee for delayed filing. The proposed fee structure is as follows:-

(i) a fee of Rs. 5000 (five thousand rupees) shall be payable, if the return is furnished after the due date but on or before the 31st day of December of the assessment year;

(ii) a fee of Rs. 10,000 (ten thousand rupees) shall be payable in any other case.

However, if total income does not exceed Rs. 5,00,000/-, the proposed fee amount shall not exceed Rs. 1000/-.

Earlier the Penalty for late return were prescribed U/s. 271F which is applicable only for return filed for Assessment Year 2017-18 and for earlier years.


*Hotel/Restaurant bills in excess of Rs 50,000/-paid by cash (increased from Rs 25,000/-)

*Sale or purchase of immovable property exceeding Rs 10 Lacs (increased from Rs 5 Lacs)

*Purchase or Sale of unlisted shares Rs 1 Lac (increased from Rs 50000/-)


Penalty for failure to furnish return of income.

271F. If a person who is required to furnish a return of his income, as required under sub-section (1) of section 139 or by the provisos to that sub-section, fails to furnish such return before the end of the relevant assessment year, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of five thousand rupees.

Following proviso shall be inserted to section 271F by the Finance Act, 2017, w.e.f. 1-4-2018 :

Provided that nothing contained in this section shall apply to and in relation to the return of income required to be furnished for any assessment year commencing on or after the 1st day of April, 2018.


Fee for default in furnishing return of income.

234F. (1) Without prejudice to the provisions of this Act, where a person required to furnish a return of income under section 139, fails to do so within the time prescribed in sub-section (1) of the said section, he shall pay, by way of fee, a sum of,

 (a) five thousand rupees, if the return is furnished on or before the 31st day of December of the assessment year;

 (b) ten thousand rupees in any other case:

Provided that if the total income of the person does not exceed five lakh rupees, the fee payable under this section shall not exceed one thousand rupees.

(2) The provisions of this section shall apply in respect of return of income required to be furnished for the assessment year commencing on or after the 1st day of April, 2018.


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  1. sajid inamdar says:

    My income is taxable income is rs. 298000. then i shall file return after 31 july then late fees 1000 paid or not.

  2. Pradyumna Joshi says:

    Thanks for putting forth such an informative article. Just a small correction..! Provisions of late fees will be governed by Sec 234F w.e.f. FY 2017-18 (AY 18-19) & Sec 271F will cease to be effective.

    Thank you.

    1. djiloka says:

      Same as for FY 2016-17.No changes for it.
      31st July:Non audited Cases
      30th Sept:Audited Cases
      However,in FY 17-18,
      Return can be filed till:
      31st Dec 2018:With Penalty of 5000
      1st Jan,2019-31st March 2019:With Penalty of 10000.

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