Section 234F;Late fees u/s 234F of Income Tax Act, 1961

Section 234F has been inserted in Income Tax Act, 1961 for levy of compulsory fee/penalty on the filing of return after the due date. This fee is applicable for people who has Gross total income more than 2.5 lakhs. Point worth consideration is, If your gross total income is less than 2.5 lakhs, then there is no 234f liability.

Now coming to the late fees under section 234F, if you miss the due date and your GTI is more than 2.5 lakhs and willing to file return then you need to pay the late fees as mentioned below:.

Explanation to above flow chart:

a)If your GTI more than 2.5 Lakhs but less than 5 Lakhs, maximum penalty shall not exceed Rs.1000/-.

b)if you miss the due date and your GTI is more than 5 lakhs and willing to file return then you need to pay the late fees as mentioned in the below table:

Date of filling	Late fees
After the due date but on or before Dec 31st	5,000
After Dec 31st but on or before march 31st of subsequent year	10,000

How to pay late fees u/s 234F

Late filing penalty can be paid using challan ITNS280 as either Income tax due or other head. Challan ITNS 280 is available in NSDL website. Late fee can be adjusted against refund due to the assesse. NSDL: https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp Who is required to file Return of Income? Sometimes an assessee might not be required to pay tax as his Total Income is less than Basic Exemption limit. But still he needs to file ROI, if GTI before any deduction exceeds 2.5 lakhs. (If individual)
NSDL: https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

Who is required to file Return of Income?

Income	Gross total Income	Require to file	Due date
Any other income	Less thank 2.5 Lakh	No	Not applicable
	More thank 2.5 Lakh	Yes	31st July
Assesse Liable for tax audit			30th september

Sometimes an assessee might not be required to pay tax as his Total Income is less than Basic Exemption limit. But still he needs to file ROI, if GTI before any deduction exceeds 2.5 lakhs. (If individual)

Consequences of late filing

Every day we delay the filing of return, time available to revise the return will be less.

If assessee is required to pay Advance tax he might end up paying more interest u/s 234A for every month of delay at 1% p.m.

If assessee has incurred loss under head PGBP or Capital Gains, He should file return before due date to carry forward such losses. If assessee miss the deadline to file return he loses chance to setoff loss against income of future years.

Defination

“gross total income” means the total income computed in accordance with the provisions of this Act, before making any deduction under this Chapter; Section 80B(5) of income tax act.

Written By:
CA Madhusoodan G Kotian
Senior Accounting Specialist at Consero Solutions India Private Limited , Bangalore (madhusudhan.g.kotian92@outlook.com)
Date: 05-05-2022
Time: 12:00:00