The Government with intention for timely compliance and filing of returns introduced section 234F which was made effective from F.Y.2017-18. It is late fees charged on delay in filing of returns. The due date for filing of returns in unaudited case is July and for audited cases is October. If taxpayer does not files return within due date of filing of return then he has to pay mandatory late fees.
LATE FEES ON PROCESSING OF REVISED RETURN
Late fee is charged on delay in filing of Original return and not revised return because revised return take the shoes of original return. But due to transformational changes in building new income tax website this section is overused i.e. it is levied while processing of revised return also in many cases. The intimations issued u/s.143(1) of the Act on processing of revised returns for A.Y.2022-23 is reducing refund by charging late fees of Rs.5000/- u/s 234F. It is therefore advisable to kindly scrutinize the intimations issued on processing of revised return. The reason behind charging late fees is computerized processing of returns and it can be rectified by filing rectification u/s 154 to “Reprocess the Return”.
WHAT IS LATE FEES ON FILING OF RETURN?
The taxpayer will be charged late fees if he is not filing returns within due date of filing return of income. The late fees is as follows-
|1.||If total income is below taxable limit say 2.5 lacs||No Late fees|
|2.||If total income From Rs. 2.5 – 5 Lakh||Rs.1000/-|
|3.||If total income is above 5 lacs||Rs.5000/-|
HOW TO PAY LATE FEES U/S 234F
|2.||Type of Payment||Self Assessment(300)|
|3.||In column Others||Fill 234F|
We often miss scrutinizing intimations issued after processing of returns of clients. In that case you client or you may lose Rs.5000/- as late fees levied on processing of returns in which refunds are claimed. It is therefore advisable to minutely scrutinize intimations issued after processing of returns so that corrective actions can be taken. The last date of filing of returns is 31st December with Rs.5000/- late fees. It is therefore requested to kindly file your returns if not filed for A.Y.2022-23 i.e. F.Y.2021-22.
The above comments do not constitute professional advice. The Author can be reached at firstname.lastname@example.org or visit website www.financialtreecompany.com. My name is CA Divya Agrawal and I am Practising Chartered Accountant, CEO and Founder of FINANCIAL TREE COMPANY (An online return filing and Tax Consultancy Company). We also upload educational videos in You tube and name of our channel is FINANCIAL TREE COMPANY. Our aim is to help people in improving their financial health by spreading knowledge and love. Stay Financially Fit and Healthy.