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’.

Read Also:-

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1 Section 272BB Penalty for failure to comply section 203A provisions
2 Section 272B Penalty for failure to comply with provisions of PAN
3 Section 272AA Penalty for failure in complying with provisions of section 133B
4 Section 272A Penalty for failure to answer questions or furnish information / returns/ statements or allow inspections etc
5 Section 271J Penalty on professionals for furnishing incorrect information in reports / certificates
6 Section 271I Penalty for failure in furnishing Form 15CA & Form 15CB
7 Section 271H Penalty for late filing/non-filing of TDS or TCS return
8 Penalty for failure in furnishing report or furnishing inaccurate report under section 286 – Section 271GB
9 Section 271GA Penalty for failure in furnishing the information / document in Form 49D as required under section 285A
10 Section 271G Penalty for failure to furnish information / document as per provisions of section 92D
11 Section 271FB Penalty for default in furnishing return of fringe benefits
12 Section 271FAB Penalty for failure to furnish statement / information / document by an eligible investment fund
13 Penalty for providing inaccurate statement of financial transaction or reportable account- Section 271FAA
14 Section 271FA Penalty for failure in furnishing statement of financial transactions or reportable account
15 Section 271E Penalty for contravening provisions of section 269T
16 Section 271DB | Penalty for contravening provisions of section 269SU
17 Section 271DA Penalty for contravening provisions of section 269ST
18 Section 271CA Penalty for failure to collect tax at source (TCS)
19 Section 271D Penalty for contravening provisions of section 269SS
20 Section 271C Penalty for failure / non-deduction / non-payment of TDS
21 TDS Rate Chart for AY 2020-21 and AY 2021-22
22 Section 271BA Penalty for failure to furnish section 92E report
23 Section 271B Penalty for failure to get accounts audited
24 Section 271AAC Penalty in respect of certain specified income
25 Section 271AA Penalty for failure to maintain Transfer Pricing documents
26 Section 271A Penalty for failure to keep / maintain or retain books of accounts, documents
27 Section 270A(1) Penalty for under-reporting & misreporting of income
28 Section 269SU Acceptance of payment through electronic modes
29 Section 234F Late fees for default in filing of income tax return
30 Section 234E Late Fee for default in filing of TDS / TCS returns
31 Section 158BFA(2) – Penalty on undisclosed income for block period
32 Section 140A(3) Penalty for non-payment of self-assessment tax

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5 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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