It is important to note that the payment of income tax and filing of the income tax return is two distinct and separate legal obligations under Income Tax. The duty of the taxpayer doesn’t end up just by timely payment of the income tax. In fact, the income tax law also mandates the taxpayer to file their income tax return within the prescribed time limit.
With a view to ensure timely filing of such income tax returns, the provisions of section 234F of the Income Tax Act were recently made effective from 1st April 2018. The provisions deal with the late fees, which is applicable in case of delay in filing of an income tax return. The said provisions of section 234F are simplified in the present article.
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Mandatory requirement of filing of income tax return-
Provisions of section 139(1) of the Income Tax Act deals with the mandatory filing of the income tax return. The following table broadly summarizes the return filing requirement-
| Category of person | Mandatory return filing requirement |
| Company | Mandatorily required to file the income tax return without any exemption limit |
| Firm | Mandatorily required to file an income tax return without any exemption limit |
| Any person other than a company or a firm | Mandatorily required to file the income tax return only if exceeds the maximum amount not chargeable to tax (i.e., only if exceeds the exemption limit) |
However, as per the seventh proviso to said section 139(1), in case of any person (other than a company or a firm) is not required to file the return, as per the above criteria, will have to mandatorily file the return if satisfies any of the below standards-
- The aggregate amount deposited, in one or more current accounts, with a banking company or a co-operative bank during the financial year exceeds INR 1 Crores.
- The aggregate amount of foreign travel expenses incurred, for himself or any other person, during the financial year exceeds INR 2 Lakhs.
- The aggregate amount of electricity expenditure incurred during the financial year exceeds INR 1 Lakhs.
Income Tax return filing due dates for the Financial Year 2020-2021 (i.e., the Assessment Year 2021-2022)-
Due dates for filing returns of income for the Financial Year 2020-2021 is extended vide circular no. 9/2021 dated 20th May 2021. The original due dates and extended due dates are summarized hereunder-
| Particulars | Original due date | Extended due date |
| Income Tax Return for non-audit cases | 31st July 2021 | 30th September 2021 |
| Income Tax Return for audit cases | 31st October 2021 | 30th November 2021 |
| Income Tax Return for cases where report under section 92E is required to be furnished | 30th November 2021 | 31st December 2021 |
Late fee provisions as per section 234F of the Income Tax Act–
Provisions of section 234F simply state that any taxpayer who is required to furnish a return as per section 139, fails or defaults in furnishing the same will be liable to pay late fees as per section 234F.
Amount of late fees payable under section 234F–
The amount of late fees payable under section 234F till 31st March 2021 is summarized hereunder-
1. INR 5,000 when the return is filed on or before 31st December; or
2. INR 10,000 in any other case.
However, with effect from 1st April 2021, the amount of late fees payable provisions is amended. Accordingly, the late fees payable as per section 234F from 1st April 2021 is-
1. Maximum INR 1,000 when the total income of the person doesn’t exceed INR 5 Lakhs; or
2. INR 5,000 in any other case.
Author Bio
Does Section 234 (F) applicable to Directors of a Company?
i am a retired person, i am not filed ITR till 27.09.2022 fine of U/S 234F will be rebate in any section
I have filed original return (ITR-2) on 28.07.2022 u/s 139(1) (Due date was 31.07.2022)for AY 2223 and didn’t verify it till 04.08.2022. There were a few mistakes in the original return. So I filed revised return for same AY on 04.08.2022 u/s 139(5) where the original return Acknowledgement number was also quoted. But I received an Intimation u/s 143(1) where I was charged Rs 5000{ u/s 234(F)}. (late fine). I have also submitted a grievance. Am I liable to pay the fine ? Shall I file Rectification after order is received ?
Certainly a late fee of Rs. 5000/- will be payable u/s 234 (f), even if it is revised after due date. Any revision to filed ITR should also be within the due date. This section of late fee was introduced in 2018.
Yes. Late fee u/s 234f will be levied. Since you have filled your return of income but not e verified it. Thus your return of income was void. After the due date you have filled belated return and not the rectification of return of income. Therefore late fee of Rs. 5000 is justified u/s 234f if total income is more than Rs. 500000.
I filed my return on 23rd jun 2021 i.e. before due date. The return is still not processed. The downloaded form shows interest us 234. Why it is so?
Rs.1,00,000/- spend for Covid Treatment this expenditure are eligible to claim income tax deduction U/S 80DDB or advise further proceeds.
I am filing my return and the system is showing me the dues u/s 234F as late fees as the date of filing return is up to 31 dec 21.
ITR filling date for AY 2021-22 extended up to 30/09/2021. But in IT new portal, system is auto calculated late fee Rs.5,000/-. Whether I have to deposit late fee Rs.5,000/- before uploading ITR
This seems to be an error in the new module .