Section 234F -Fee (Penalty) for delay in filing Income-tax return

A new section 234F has been inserted in Income Tax Act, 1961 with effect from Assessment Year 2018-19 (Financial Year 2017-18).

Under this section, fee (penalty) is levied if the Income-tax return is not filed within due date. Earlier penalty for delay in filing of return was levied at the discretion of Assessing Officer. But now, the same is payable before filing of Income-tax return.

 

The due date of filing Income Tax returns for Financial Year 2017-18 (Assessment Year 2018-19) is 31/07/2018 for salaried taxpayers.

The fee (penalty) will be as follows:

Total Income	Return filed	Fee (Penalty)
Exceeds Rs. 5 Lakh	On or before 31st December of Assessment Year	Rs. 5,000/-
	In any other case	Rs. 10,000/-
Upto Rs. 5 Lakh	After due date	Rs. 1,000/-

Examples:

1.      Mr. A, having total income of Rs. 6 lakh, filed his Income-tax return for Assessment Year 2018-19 (Financial Year 2017-18) on 25/07/2018. What will be the fee (penalty) under section 234F?

Since the Income-tax return is filed within due date (31/07/2018), no fee (penalty) will be levied.

2.      Mr. B, having total income of Rs. 7 lakh, filed his Income-tax return for Assessment Year 2018-19 (Financial Year 2017-18) on 10/11/2018. What will be the fee (penalty) under section 234F?

Since the Income-tax return is filed after due date (31/07/2018), but on or before 31/12/2018, fee (penalty) will be Rs. 5,000/-

In the above situation, if total income of the Assessee does not exceed Rs. 5 Lakh, the fee (penalty) will be Rs. 1,000/-.

3.      Mr. C, having total income of Rs. 5.5 lakh, filed his Income-tax return for Assessment Year 2018-19 (Financial Year 2017-18) on 07/02/2019. What will be the fee (penalty) under section 234F?

Since the Income-tax return is filed after due date (31/07/2018) and after 31/12/2018, fee (penalty) will be Rs. 10,000/-

In the above situation, if total income of the Assessee does not exceed Rs. 5 Lakh, the fee (penalty) will be Rs. 1,000/-.