Article explains Applicability of section 234F of the Income Tax (Late fees for default in filing of income tax return), Amount of late fees payable under section 234F of the Income Tax Act and answers Frequently Asked Question (FAQs) on Section 234F.

The taxpayer generally assumes that once the taxes are being paid, their duty gets over. However, the taxpayer should be aware that, section 139 of the Income Tax Act mandates every taxpayer, whose total income exceeds the basic exemption limit, to file their respective income tax return within the prescribed due date.

In case the taxpayer fails to the file the income tax return within the prescribed time limit, he would be liable to pay late fees for such default as per provisions of section 234F of the Income Tax Act.

The present article highlights the applicability of section 234F of the Income Tax; the amount of late fees payable under section 234F of the Income Tax Act and Frequently Asked Questions.

Section 234F Late fees for default in filing of income tax return

Applicability of section 234F of the Income Tax

Provisions of section 234F get attracted if the following conditions are satisfied –

1. The assessee is mandatorily required to file the income tax return as per the provision of section 139; and

2. The assessee has either not filed or has delayed in the filing of the said income tax return.

In nut-shell, provisions of section 234F apply to all the categories of persons, like an individual; HUF; AOP; BOI; company; firm etc., in case the income tax return is filed after respective due dates.

It is important to note here that the provisions of section 234F of the Income Tax Act is effective only from the Assessment Year commencing from 1st April 2018.

It is also pertinent to note that the late fee under section 234F was introduced with an aim to ensure timely filing of the income tax return.

Amount of late fees payable under section 234F of the Income Tax Act

1. Late fees payable in case the total income of the assessee is more than INR 5 Lakhs –

Return filed on or before 31st December Fees of INR 5,000 is payable
In any other case Fees of INR 10,000 is payable

2. Late fees payable in case the total income of the assessee is less than INR 5 Lakhs – the maximum amount of fees payable is INR 1,000.

Frequently Asked Question (FAQ) on Section 234F

1. What is Section 234F?

Section 234f of the Income Tax Act levies late fees on the person who has not filed their income tax return within the prescribed time limit.

2. What is fees under section 234F?

As per section 234F, in case of default, the defaulter is required to pay a late fee of INR 5,000 in case the return is filed on or before 31st December. Whereas, in any other case, the defaulter is required to pay a late fee of INR 10,000.

However, if the total income of the defaulter doesn’t exceed INR 5 Lakhs, then, in such case maximum amount of late fee payable under section 234F of the Income Tax Act would be INR 1,000.

3. What is 234F in income tax?

Section 234f in income tax levies late fees in case the taxpayer fails to file their income tax return within the given due dates.

4. How do I pay under section fees on 234F?

The defaulter can make payment of applicable late fees through challan 280 by selecting ‘Type of Payment’ as ‘Self Assessment Tax’ and mentioning late fee amount in column ‘Others’.

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4 Comments

    1. T VEERABHADRA RAO says:

      Sec 234A is interest payable on Income-tax, where it exceeded by Rs.10,000/- ; Sec.234A applicable where the assessee liable to pay Income-tax more than Rs.10,000/- where as Sec 234F is a penalty for late submission of Income-tax Return. Penalty applicable only if the Income exceeded by Rs.2,50,000/- Rs.1,000/- payable for the income between Rs.2,50,000 and Rs.5,00,000 and Rs.5,000/- for Income exceed by Rs.5,00,000 upto December, 31st. and Rs.10,000/- where income exceed by Rs.5,00,000/- and Income-tax return filed after 31st December.

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