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No Section 234F late fee despite late filing of income tax return

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.

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.

Thus, 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. 

Categories: Income Tax

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