Late fee Under Section 234F of Income Tax Act, 1961 for Filing of Income Tax Return After due due date or  Late Filing of Income Tax Return is common discussion among taxpayers/tax consultants. We should analysis the section 234F of Income Tax Act, 1961.

As per section 234F of Income Tax Act, 1961 says 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.

Late FeesThus, late fee shall be applicable on all assesses who is liable to file income tax return under section 139 of Income tax Act, 1961.

As per section 139 inter-alia provides, every person,—

(a)  being a company or a firm; or

(b)  being a person other than a company or a firm, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.

As per proviso to Section 139 inter-alia provides, every person, being an individual or a Hindu undivided family or an association of persons or a body of individuals, whether incorporated or not, or an artificial juridical person, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year, without giving effect to the provisions of [clause (38) of section 10 or] section 10A or section 10B or section 10BA or Chapter VI-A exceeded the maximum amount which is not chargeable to income-tax, shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed.

Hence, late fee U/s 234F is not applicable on any assessee who is not liable to file income tax return as per above provision.

Example: – An individual (age below 60 years) having Gross total income Rs. 2,48,000 and no deductions under chapter VI-A. If such individual files income tax return after due date, there will be no late fee in this case. 

Example: – An individual (age below 60 years) having Gross total income Rs. 2,52,000 and no deductions under chapter VI-A. If such individual files income tax return after due date, there will be late fee in this case. 

Conclusion:-    

If any person who is not liable to file income tax return U/s 139, such person should not worry about late fee under section 234F even though income tax return filed after due date. 

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Location: Rohini, New Delhi, IN
Member Since: 30 Aug 2017 | Total Posts: 3

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30 Comments

  1. Champat says:

    Sir according to my knowledge when we file any income tax return then we have to select the section under which we are filing the return for person which can be 139(4),139(1)….etc…therefore as per your interpretation person is liable to penalty if he will filed the income tax return..
    Suppose a individual having 240000/- Total income as per income tax return then if he will file return then he has to select any one section under which he is filing the return. There for this individual will select section 139(1). Therefor he declared that is he liable under section 139(1) yhen how can he escape from levy of section 234 f??? please explain.???? . Sir

  2. CA Gjanan Khot says:

    I believe the Legislative intent is to discourage late filings. In the spirit of legislative intent, this interpretation may not hold good.

  3. SANJIB CHAKRABORTY says:

    I have filed a Writ Petition challenging the virus of section 234F of the Income Tax Act, 1961 on 12-07-2018 vide No. WP-11982 W/2018 which is admitted today on 18-07-2018 by the High Court, Kolkata.

  4. Girishkumar says:

    If a person have interest income say Rs. 1,80,000/-, no other income, and tds rs. 18000/- by bank. Suppose he files return after due date, then fees leviable ?

  5. CA. Jainam Shah says:

    Appreciated the Interpretation, but Section 139 does not mandate an assessee to file the return if his/her income do not exceed the threshold limit. So, if an assessee wants to file the Nil return he/she has to file under Section 139 of the Act and as the return file under section 139 after due date the late filing fees will be levied in my opinion.

  6. Bhadkamkar Avinash Vishnu says:

    I am a sr. citizen aged 77 years, getting Rs.34176/- per year as superannuation pension and Rs.312600/- as professional fees for working as advisor. Rs.31260/- have been deducted as TDS. Savings bank & FD interest is less than Rs.10000/-.I have paid Rs.41000/- as LIC premium of my son’s policies. I think i have not to pay any tax. Which form i should file to get refund? If i file return agter 31-07-2018,will i have to pay late fee? Thanks.

  7. bhaskaran says:

    why should this kind of observations be published with an attractive caption, with no benefit to any body, is really not known. Ridiculous.

  8. Manoj Saraswat says:

    nice explanation but if the total income exceeds Rs 250000/- and taxable income does not exceeds Rs. 250000/- after deductions under chapter VI-A late fee will be charged or not

  9. Rajesh Uttam Motiramani says:

    Manisha Ma’am, excellent analysis of the proviso to Section 139 read with Section 234F of the Income Tax Act, 1961. Keep it up.

  10. Kunal says:

    Disagree, since even if you are not liable to file as per the Act. But in the ITR when you file the ROI you select section 139(1) i.e the provision under which you are filing and hence the Late fees will get attracted. And hence even though the article may be technically write, however it is ignoring the practical aspect

  11. Pramod Thakar says:

    Good.

    What will be the effect under following situation.
    Total income 4.75 lacks
    Deduction under Chapter VI, 1.5 + mediclaim 0.25,
    Taxable income 3.00 lacs.
    Tax rebate Rebate 2500/-
    Tax liability Nil

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