Section 234F of Income Tax Act

Missing the deadline for filing your Income Tax Return (ITR) can bring more than just hassles. It can also lead to penalties and additional late fees. Section 234F of Income Tax Act clearly outlines the penalties for late submissions of ITRs.

In this guide, you will learn about Section 234F and crucial details related to it.

What is Section 234F of Income Tax Act

Section 234F of Income Tax Act, which came into effect with the Finance Act 2017, deals with the late filing of income tax returns. Its main goal is to promote timely filing and improve tax administration.

This section applies to everyone who is required to file income tax returns in India. This provision has been in effect from the assessment year 2018-19 onwards.

Who Does Section 234F Apply To

Section 234F of Income Tax Act covers the following entities:

• Indian citizens with taxable income
• Companies
• Firms
• Association of Persons (AOPs)
• Hindu Undivided Families (HUFs)

Penalties for Late Filing of ITR Under Section 234F

The fees under Section 234F for late filing of ITR are as follows:

• When you file your return after the tax filing due date but on or before December 31st of the assessment year, it will result in a penalty of Rs 5,000.
• If you file your return after December 31st and your total income exceeds Rs 5 lakh, the penalty will be Rs 10,000.
• For those with a total income less than Rs 5 lakh who file after the due date but on or before December 31, the penalty is Rs 1,000.
• No late filing fees apply if your total income is Rs 2.5 lakh or less.

To understand the amount of the fee that would be payable under Section 234F, let us look at an example involving different income levels and return filing dates.

How to Pay Section 234F Penalty Online

To pay the Section 234F late fee, follow these steps using Challan No. 280:

Step 1: Select Payment Type

Choose ‘Self-Assessment Tax (300)’ as the payment type in Challan No. 280.

Step 2: Enter Payment Details

In the ‘Details of Payments’ section, input the late fee amount under the ‘Others’ column. You can complete the payment through net banking or a debit card.

Step 3: Download Challan

After processing the payment, download the challan receipt containing all necessary details. Make sure to note down the BSR code and challan number for use when filing your return.

Section 234F of Income Tax Act imposes significant penalties for taxpayers who miss the ITR filing deadline. These penalties are designed to discourage delays and ensure smooth tax collection in India. As a taxpayer, it is important to be aware of these penalties to avoid extra liabilities on your annual taxes.