INTRODUCTION
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
| S. No. | Particulars | Remarks |
|---|---|---|
| 1. | Challan No. | 280 |
| 2. | Type of Payment | Self Assessment(300) |
| 3. | In column Others | Fill 234F |
OUR COMMENTS
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 [email protected] 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.
This is one of the most misunderstood provisions, so useful clarification:
SECTION 234F TRIGGER POINT: Section 234F applies to the ACT OF LATE FILING of the return of income. It is levied when the original return itself is filed after the due date. It is NOT a penalty on the revised return.
SCENARIOS:
Original return filed ON TIME (before July 31) + Revised return filed after July 31 = NO Section 234F on the revised return. The late fee was never triggered because the original was on time.
Original return filed LATE (after July 31, as a belated return under 139(4)) + Revised return subsequently filed = The 234F fee is levied on the ORIGINAL late filing. There is no separate 234F on the revision of an already-late-filed return.
A BELATED RETURN CAN BE REVISED: This is the point the article addresses. If you file a belated return under Section 139(4) and later realize there is an error, you CAN file a revised return under Section 139(5). The 234F was already paid on the original belated filing; the revision itself does not trigger another 234F.
PRACTICAL IMPLICATION: Where this gets complicated is at the assessment stage. If the CPC processes the revised return and identifies an additional tax demand based on the revised figures, they do NOT re-levy 234F , the fee is already baked into the original processing. This is confirmed by multiple ITAT orders and the plain reading of Section 234F(1).
Hi,
Even though I filed original return on 9th July and revised return on 10th Nov, which was given by income tax dept, late fee demand notice was sent to me. what should I do now?
I have filed grievance but there is no response from income tax team
You need to file rectification on revised return
Fee for late filing of Return is leviable u/s 234F. Sen 234F states that late fee shall be leviable where a person who is required to furnish a return of income u/s 139 and he fails to do so within the time allowed u/s 139(1). Sec 139(1) obligates a person, other than a company or a firm, to file a Return of Income if his total income (or the total income of any other person in respect of which he is assessable under the Act) exceeded the maximum amount which is not chargeable to tax. Sec 2(45) defines Total Income as `Total amount of income referred to in sec 5 , computed in the manner laid down in this Act`. Again Sec 80A (1) states `In computing the total income of assessee, there shall be allowed from his Gross Total Income, in accordance with and subject to the provisions of this Chapter (i.e Chapter VIA) the deductions specified in sections 80C to 80U. This clearly means that where the gross total income of an assessee being an Individual or an HUF before duduction u/s 80C to 80U is (say 4 lacs and he claims deductions of 1.5 lacs u/s 80C and also 10000 u/s 80TTA, then his total income becomes 240000 (400000-150000-10000). This amount which is his Total lncome as per Sec 80A(1) being the maximum amount not chargeable to tax which is 250000 at present, then late fee u/s 234F is not chargeable but it is seen that in all such cases where total income before deductions under Chapter VIA exceeds Rs.250000 but is less than 250000 after deductions under Chapter VIA, Late fee of Rs.1000/- is being charged by the department. Can someone explain me as to why?
Hello Sir,
The return is processed by CPC Bengaluru and because of computerized processing of returns and technical glitches in new portal the late fees is being levied. We need to reprocess the return otherwise in case of refund client will get less refund.
Presently there is no provision of Rs. 10000 late fees u/s 234F as no belated or revised return can be filed after 31st December. Kindly update.
Penalty in revised return can be rectify by making e verification of original return.
since original return was not everify hence it was not considered as filed and revised return filed late hence they considered as original and penalty levied.
Sir original return is e-verified and processed then also late fees u/s. 234F is levied on revised return.
if gross income is less than 2.5 lac i.e. under exemption limit then that person can file return anytime (after 31 dec or next AY)without any kind of penalty correct?